In a significant development for Nigeria’s economic landscape, Lagos State has been ranked the nation’s leading subnational entity for ease of doing business. The ranking comes from a comprehensive new report that assesses business environments across all states, underscoring the critical role of state-level governance in national economic growth.
Report Methodology and Key Findings
The report, officially unveiled in Abuja on March 28, was developed by the Presidential Enabling Business Environment Council (PEBEC) in collaboration with UK International Development and the Nigeria Economic Stability and Transformation Programme. It employed a detailed framework of 16 indicators, spanning electricity access, infrastructure, digital connectivity, land administration, justice delivery, and taxation, among others. These were broken into 36 sub-indicators tied to administrative data, ensuring findings reflect both policy and practical service delivery.
Lagos secured the top position by demonstrating superior regulatory readiness, infrastructure, and institutional transparency. Its strengths include relatively reliable electricity, functional land administration, efficient commercial courts, strong market access, a skilled workforce, and robust transport infrastructure. The state was followed by Kaduna, Oyo, the FCT, Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa in the top ten.
Regional Disparities and Identified Gaps
A review of the data reveals uneven performance across geopolitical zones, with the South-West accounting for four top-ten states. While the report highlights Lagos’s advanced environment, it also notes key gaps such as issues with touting, weak investor aftercare systems, and uneven digital connectivity in non-urban areas. The assessment serves as a vital tool for tracking reform progress, suggesting that as the federal government commences broader national initiatives, targeted state-level interventions are paramount for improvement.
The findings emphasize that Nigeria’s economic trajectory is increasingly shaped by how effectively state governments address local bottlenecks. This state-level focus is crucial for meaningful progress, even as federal reforms provide an overarching framework. The report’s evidence-based approach aims to guide policymakers in identifying high-impact interventions to foster a more conducive business climate nationwide.
