Lagos, Kaduna Take Top Spots as Most Business-friendly States

Lagos Island's commercial district

Lagos and Kaduna states have emerged as the top-performing states in the federal government’s ease of doing business (EoDB) ranking for 2025.

The Director-General of the Presidential Enabling Business Environment Council (PEBEC), Zahrah Audu, stated in a press release on Thursday, December 4.

The ranking is based on the council’s 2025 subnational Ease of Doing Business (EoDB) report.

According to Audu, the report is a comprehensive data-driven assessment of how Nigeria’s 36 states and the federal capital territory (FCT) are shaping business competitiveness through regulation, infrastructure, and administrative efficiency.

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The report assessed performance across 16 indicators and 36 sub-metrics covering electricity, infrastructure, and digital connectivity.

Other metrics used include land administration, taxation, trade logistics, justice delivery, investor support, and skilled labour readiness.

“Lagos emerged as the best-performing state with an 85.6% score, while Kaduna was second with a 65.1% score.

“Oyo, FCT, and Ogun rounded up the top five with scores of 62.7%, 61.0%, and 59.9%, respectively. Enugu (56.2%) came in sixth, with Plateau (56.2%), Ekiti (55.8%), Kano (54.8%), and Nasarawa (53.4%) rounding out the top 10 states.

“These states distinguished themselves through consistent reform momentum, improved digital processes, and more predictable regulatory environments,” Audu said.

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He stated further that the report highlights five priority interventions that states can implement immediately.

He said these include establishing investor aftercare systems and strengthening MSME credit enablement.

Other priority areas are interstate trade rules, upgrading commercial justice processes, and improving power reliability for industrial clusters.

Audu added that PEBEC’s support for state reforms, via the $750 million state action on business enabling reforms (SABRE) programme, makes the 2025 EoDB report crucial for policy, investment, and competitiveness in Nigeria.

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Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X

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