Lagos, Kaduna, Oyo lead Nigeria’s most competitive business environments in 2025
The Presidential Enabling Business Environment Council (PEBEC) has released its 2025 Subnational Ease of Doing Business (EoDB) Report and Business Facilitation Act (BFA) Performance Report, providing a detailed snapshot of how Nigerian states and federal agencies are shaping the country’s business climate.
According to the Subnational EoDB Report, Lagos State tops the ranking with a score of 85.6 per cent, driven by reforms in land administration, taxation, digital processes, trade logistics, and investor support services. Kaduna State follows in second place with 65.1 per cent, reflecting improvements in administrative efficiency and regulatory predictability. Oyo (62.7 per cent), the Federal Capital Territory (61.0 per cent), and Ogun (59.9 per cent) complete the top five. Enugu, Plateau, Ekiti, Kano, and Nasarawa round out the top 10.
The report, which evaluates states across 16 indicators and 36 sub-metrics, covers electricity reliability, skilled labour availability, commercial justice delivery, digital connectivity, taxation, and support for micro, small, and medium enterprises (MSMEs). PEBEC noted that the 2025 edition introduces enhanced data-driven benchmarking to help states identify reform gaps and track progress against peers.
To accelerate improvements, PEBEC recommended five priority interventions for states: establishing investor aftercare systems, strengthening MSME credit frameworks, harmonising interstate trade regulations, upgrading commercial justice systems, and improving power reliability, particularly for industrial clusters and SMEs. These measures are aligned with the ongoing $750 million State Action on Business Enabling Reforms (SABER) programme, which incentivises measurable reform progress across the federation.
Complementing the state-level assessment, the BFA Performance Report evaluates 69 federal Ministries, Departments, and Agencies (MDAs) on transparency, digital process optimisation, and predictable service timelines. The Nigerian Content Development and Monitoring Board (NCDMB) topped the ranking with 90.6 per cent, followed by the National Drug Law Enforcement Agency (NDLEA) at 89.3 per cent, and the Nigeria Customs Service (NCS) at 86.6 per cent. The Nigerian Communications Commission (NCC) and the Nigerian Ports Authority (NPA) placed fourth and fifth with 85.3 per cent and 84.2 per cent, respectively.
The assessments combined monthly compliance submissions, mystery shopper evaluations, website audits, ReportGov analytics, and process-verification exercises to track real-time service delivery.
PEBEC Director-General, Princess Zahrah Mustapha Audu, urged states and MDAs to view the reports as actionable reform blueprints rather than mere scorecards. “These assessments are tools to deepen transparency, strengthen competitiveness, and align Nigeria’s business environment with global standards,” she said, stressing the importance of ownership in delivering reliable, technology-driven services.
Established in 2016 and chaired by Vice President Kashim Shettima, PEBEC continues to coordinate nationwide reforms aimed at eliminating bureaucratic and legislative bottlenecks, improving regulatory efficiency, and enhancing Nigeria’s attractiveness to investors.
