The report was unveiled in Abuja on Friday, March 28, at the Reform and Diplomatic Roundtable 2026.
The event was organised by the Presidential Enabling Business Environment Council in collaboration with UK International Development and the Nigeria Economic Stability and Transformation Programme.
Lagos clinched the top position on the strength of its regulatory readiness, infrastructure, and institutional transparency. It was followed by Kaduna, Oyo, the FCT, Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa.
What the report says
The report underscores the growing importance of state-level reforms in shaping Nigeria’s economic future. While federal policies remain critical, it notes that the real impact on businesses is felt at the subnational level—where enterprises operate daily.
“Nigeria’s business environment remains central to the country’s economic resilience and long-term growth prospects. With more than 39 million Micro, Small and Medium-sized Enterprises (MSMEs) operating across states, how each subnational is performing has never been more important,” the report stated.
Beyond rankings, the assessment serves as a data-driven tool for tracking reform progress and identifying high-impact interventions.
“This assessment goes beyond a scorecard. It offers a grounded, evidence-based view of how Nigeria’s states are enabling businesses—highlighting progress and pinpointing persistent challenges. The analysis relies largely on secondary data capturing the adoption of technology, automation, and digitalisation in public service delivery.”
Key insights
According to Nairametrics, the report applied a framework of 16 indicators, including electricity access, infrastructure, digital connectivity, land administration, justice delivery, taxation, trade logistics, investor support, crisis resilience, and workforce development.
These were further broken down into 36 operational sub-indicators tied to administrative datasets—ensuring the findings reflect both policy frameworks and real-world service delivery.
Lagos’ top ranking is attributed to its relatively reliable electricity supply, efficient land administration, and functional commercial courts. The state also benefits from strong market access, a skilled workforce, effective contract enforcement, and robust infrastructure, including airports and rail networks.
However, gaps remain. The report highlights concerns around touting and loitering, weak investor aftercare systems, and uneven digital connectivity in non-urban areas.
“The presence of unauthorized individuals around key business and logistics touchpoints creates security and safety concerns for commercial operators. This disrupts the predictable flow of trade and undermines confidence in the business environment.”
Regional performance
A review by Nairametrics shows uneven performance across Nigeria’s six geopolitical zones. The South-West accounted for four states in the top 10, followed by the North-Central with three, the North-West with two, and the South-East with one. No state from the North-East or South-South made the top tier.
Enugu State, the only South-East state in the ranking, placed sixth, driven by strengths in digital connectivity, electricity access, workforce development, and social infrastructure. However, it continues to face challenges in investor aftercare and access to credit.
What you should know
The report reinforces earlier concerns that inefficiencies in company registration processes remain a major barrier to formalisation. With over 39 million MSMEs nationwide, opaque procedures and delays continue to discourage many businesses from entering the formal economy.
To address these issues, the report outlines 10 strategic priorities, including:
Digitising and automating land administration.
Expanding access to credit through development finance institutions
Strengthening commercial and small claims courts
Enhancing alternative dispute resolution mechanisms
Other recommendations include establishing investor aftercare units, removing interstate trade barriers, improving logistics infrastructure, expanding digital connectivity, enforcing right-of-way policies, advancing electricity sector reforms, developing one-stop investment centres, adopting alternative energy in transport, and implementing effective grievance redress systems.
Bottom line: Lagos’ top ranking reinforces its status as Nigeria’s commercial nerve centre but the report makes it clear that sustained reforms across all states will be critical to unlocking the country’s full economic potential.
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