Lagos Recognized Among Fastest-Growing States in Ease of Doing Business Report
Lagos, Nigeria’s commercial epicenter, has secured a position among the top 10 fastest-growing states in the recently released 2025 Ease of Doing Business report by the Presidential Enabling Business Environment Council (PEBEC). The rankings were unveiled during the PEBEC Subnational Ease of Doing Business Report 2025 at the Reform and Diplomacy Roundtable 2026, held in collaboration with UK International Development and Nigeria Economic Stability Transformation (NEST) in Abuja.
According to the report, Lagos ranks first, followed closely by Kaduna in second place. Other notable states in the top 10 include Oyo, the Federal Capital Territory (FCT), Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa rounding out the list. This comprehensive report evaluates all 36 states and the FCT, highlighting their business environments.
Key Factors Driving Business Environment Improvements
PEBEC’s assessment extends to rural regions, taking into account crucial factors such as access to electricity, infrastructure, digital connectivity, land management, judicial services, taxation, trade logistics, and investor support. The report categorizes these indicators into 36 operational sub-indicators that highlight distinct features of each state’s business climate.
Notably, Lagos is praised for its advanced and competitive business environment, which combines reliable electricity, robust transport infrastructure, and efficient digital services. Additionally, the city boasts a functional land administration system, operational courts, alternative dispute resolution (ADR) mechanisms, and accessible grievance redress channels. However, challenges remain, including complex land treatment schedules, land use fees, and various administrative bottlenecks that can deter investors.
Significant Reductions in Business Registration Timelines
During her opening remarks at the roundtable, PEBEC Secretary-General Princess Zarah Mustapha Odu emphasized that reform-driven states have achieved a remarkable 40% reduction in business registration timelines. This substantial improvement reflects a commitment to creating a more conducive environment for business operations.
Furthermore, Audu noted that these states have seen land administration efficiency increase by over 30%, alongside significant advancements in digital service delivery and dispute resolution mechanisms. “These are not abstract indicators; they signal to investors that Nigeria is becoming more predictable, transparent, and competitive,” she stated.
Impact of Continued Reforms on Investor Confidence
The report highlighted that the top 10 performing states—including Lagos, Kaduna, Oyo, FCT, Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa—demonstrate the tangible outcomes of sustained reforms. Such reforms are measurable and contribute to increased efficiency, reduced transaction costs, and heightened investor confidence.
However, Audu cautioned that while progress is commendable, it alone is insufficient. The roundtable discussion underscored a crucial shift from merely diagnosing issues to actively pursuing transformation and delivering results. The engagement of the diplomatic community at the event signified a broader commitment to enhancing Nigeria’s business environment and its appeal to global investors.
