Lagos remains Nigeria’s top-performing state for ease of doing business, according to a new report by the Presidential Enabling Business Environment Council (PEBEC).
PEBEC in its Subnational Ease Of Doing Business Report 2025, which analyses the business environment across Nigeria’s 36 states and the Federal Capital Territory (FCT), noted that five states stood out as the strongest performers: Lagos, Kaduna, Oyo, the FCT and Ogun.
Lagos with 85.6 per cent stood out particularly for infrastructure such as roads and logistics, land administration, regulatory digital transformation, and digital literacy. It also continues to serve as the country’s tech hub and logistics gateway. Others include Kaduna (65.1 per cent), Oyo (62.7 per cent), the FCT (61.0 per cent) and Ogun (59.9 per cent).
Meanwhile, states such as Benue, Borno, and Zamfara remain at the bottom of the ranking as years of prolonged conflict and terrorism continue to make business operations challenging.
“Lagos state demonstrates strong market access, supported by efficient one-stop shops and clearly published incentives. Streamlined regulatory procedures and coordinated institutional support enable businesses to enter and expand operations with minimal delays, fostering investor confidence and enhancing the state’s attractiveness for new investment,” it said.
While Lagos ranks ahead of its peers, critical gaps include touting and loitering, investor aftercare, and digital connectivity.
PEBEC warned that “the presence of unauthorized individuals loitering around key business and logistics touchpoints creates an environmental nuisance and introduces significant security and safety concerns for commercial operators and the public.”
On digital connectivity, PEBEC said with network coverage concentrated in urban centres, limiting businesses to city clusters and restricting e-commerce adoption in inner towns and communities, and curtailing digital economic gains, adding that poor performance in investor aftercare signals gaps in post-entry support.
“The absence of a dedicated desk or poorly functioning departments results in delayed responses, inconsistent engagement, and limited guidance for investors, reducing Lagos state’s ability to retain existing investments and attract new capital.”
PEBEC noted that the Lagos State government must launch a high-capacity, dedicated Investor Aftercare Service to provide white-glove support for existing investors.
In the medium term, it advised that the state to prioritize enhanced security measures and regulatory enforcement by integrating real-time surveillance at key street corners and business corridors, coupled with deploying dedicated special task forces to physically remove loitering individuals.
“Crucially, the state should also pass an anti-loitering law to provide the legal framework necessary for sustained enforcement.”
On tackling its long term challenges, Lagos needs to upgrade digital infrastructure by extending fiber optic networks and incentivising last-mile connectivity.
“This will make high-speed internet more reliable, cut operational friction, and help businesses access markets easier,” PEBEC said.