The Presidential Enabling Business Environment Council (PEBEC) has released its 2025 Subnational Ease of Doing Business (EoDB) Report, with Lagos State maintaining its lead as Nigeria’s most business-friendly subnational entity, widening the gap between itself and other states in terms of investor confidence and regulatory efficiency.

According to the report, Lagos scored 85.6%, while Kaduna trailed with 65.1%. Oyo, the Federal Capital Territory (FCT), and Ogun secured third, fourth, and fifth positions with 62.7%, 61.0%, and 59.9% respectively. Completing the top 10 were Enugu (56.2%), Plateau (56.2%), Ekiti (55.8%), Kano (54.8%), and Nasarawa (53.4%).

Assessment Methodology

PEBEC said the 2025 index is based on hard administrative evidence rather than political claims, evaluating states across 16 indicators and 36 sub-metrics, including:

• Electricity reliability
• Taxation transparency
• Digital governance
• Land administration
• Logistics efficiency
• Commercial justice delivery
• Investor support
• Skilled labour readiness

The Director-General of PEBEC, Princess Zahrah Mustapha Audu, highlighted that the rankings reflect states transitioning from policy rhetoric to tangible implementation, particularly under the $750 million State Action on Business Enabling Reforms (SABER) programme, designed to enhance subnational competitiveness.

Gaps and Recommendations

Despite improvements, the report cautioned that most states still lack critical investor aftercare systems, predictable interstate trade frameworks, stable industrial power supply, and functioning MSME financing channels.

PEBEC identified five urgent reforms governors must prioritize to attract productive capital:

1. Overhaul commercial justice processes
2. Stabilize power supply for industrial and SME clusters
3. Build functional post-investment support mechanisms
4. Harmonize interstate taxation and trade rules
5. Eliminate logistics bottlenecks affecting goods movement across state borders

PEBEC’s Verdict

Established in 2016 and chaired by Vice President Kashim Shettima, PEBEC emphasized that the report is not ceremonial but a reform compliance audit, directly influencing state eligibility for federal incentives, global investment opportunities, and development financing allocations.

“The 2025 Subnational EoDB Report provides a critical foundation for policy action, investment decisions, and long-term competitiveness across Nigeria,” the Council noted, adding that while Lagos continues to set the benchmark, most states remain hobbled by bureaucratic bottlenecks, ad hoc taxation drives, and inconsistent regulatory environments.