The Presidential Enabling Business Environment Council (PEBEC) has officially released the 2025 Subnational Ease of Doing Business (EoDB) Report, identifying Lagos, Kaduna, and Oyo as the most competitive states for enterprise in Nigeria. This authoritative scorecard offers a granular analysis of the regulatory and infrastructural frameworks across the 36 states and the Federal Capital Territory (FCT), serving as a critical benchmark for investors and policymakers alike. The report underscores the divergent economic trajectories of Nigerian states, highlighting those that have successfully implemented reforms to attract capital and those lagging in administrative efficiency.
Lagos State retained its position as the commercial nerve center of the nation, securing the top spot with a composite score of 85.6 percent. PEBEC attributed this dominance to sustained reforms in land administration, the digitization of tax systems, and improvements in trade logistics. The state’s ability to streamline business registration processes and provide robust investor support services has set a high bar for subnational governance. Kaduna State followed in second place with 65.1 percent, a testament to its long-term investment in administrative efficiency and regulatory predictability, which has made it a model for ease of doing business in Northern Nigeria.
Oyo State’s emergence in the top three, with a score of 62.7 percent, marks a significant milestone in its economic evolution. This ranking validates the current administration's aggressive push to modernize the state's infrastructure and harmonize tax collection. By prioritizing reforms that reduce the cost of doing business, Oyo has effectively positioned itself as a viable alternative to Lagos for industrial and commercial activities in the South West. The report notes that the state’s focus on improving digital connectivity and commercial justice delivery has been pivotal in creating a conducive environment for Micro, Small, and Medium Enterprises (MSMEs).
The FCT (61.0 percent) and Ogun State (59.9 percent) rounded out the top five, demonstrating the competitive advantages of proximity to federal power and industrial clusters, respectively. Other states making the top 10 include Enugu, Plateau, Ekiti, Kano, and Nasarawa. These rankings reflect a broader trend where states are increasingly leveraging technology to bypass bureaucratic bottlenecks. The PEBEC assessment evaluated performance across 16 primary indicators and 36 sub-metrics, including electricity reliability, skilled labor availability, and the efficiency of commercial courts.
In a parallel release, PEBEC also published the 2025 Business Facilitation Act (BFA) Performance Report, which scrutinizes the compliance of federal Ministries, Departments, and Agencies (MDAs) with statutory requirements for transparency and service delivery. The Nigerian Content Development and Monitoring Board (NCDMB) emerged as the most efficient federal agency, scoring 90.6 percent. It was closely followed by the National Drug Law Enforcement Agency (NDLEA) and the Nigeria Customs Service (NCS), which were recognized for their efforts in simplifying procedures and enhancing digital trade facilitation.
To sustain this momentum, PEBEC has outlined five priority interventions for states: the establishment of investor aftercare systems, the strengthening of MSME credit frameworks, the harmonization of interstate trade regulations, the upgrading of commercial justice systems, and the improvement of power reliability for industrial zones. These recommendations are designed to align state-level reforms with the $750 million State Action on Business Enabling Reforms (SABER) program, which provides financial incentives for measurable progress.
Ultimately, the 2025 reports serve as a wake-up call for underperforming states. By providing data-driven evidence of the link between governance reforms and economic competitiveness, PEBEC has created a competitive atmosphere where states must innovate or risk being left behind in the race for investment. As Princess Zahrah Mustapha Audu, the PEBEC Director-General, noted, these assessments are not merely scorecards but actionable blueprints for building a globally competitive business environment in Nigeria.
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