The Federal Government, through the Presidential Enabling Business Environment Council (PEBEC), has officially declared Lagos State as Nigeria's top performer in creating a conducive environment for commerce. This announcement follows the release of the comprehensive 2025 Subnational Ease of Doing Business (EoDB) Report.
Lagos Leads as Reform Champion
In the latest assessment, Lagos emerged first with a commanding performance score of 85.6 per cent. This places it significantly ahead of Kaduna State, which secured second place with 65.1 per cent. The top five was completed by Oyo State in third (62.7%), the Federal Capital Territory (61.0%), and Ogun State (59.9%).
The rankings were determined after a rigorous evaluation of all 36 states and the FCT. PEBEC's methodology covered 16 critical indicators and 36 sub-metrics. These metrics spanned essential areas for enterprise growth, including reliability of electricity supply, state of infrastructure, digital connectivity, efficiency of land administration, and transparency in taxation.
Other key areas measured were trade logistics, the speed and fairness of justice delivery, the effectiveness of investor support mechanisms, and the readiness of the local skilled labour force. According to PEBEC, the leading states distinguished themselves by maintaining consistent reform efforts, enhancing digital government processes, and establishing more predictable regulatory frameworks for businesses.
Urgent Action Points for State Governments
The 2025 report did not just celebrate winners; it also laid out a clear roadmap for improvement. PEBEC identified five urgent reform priorities that all states need to address to boost their economic competitiveness.
The council called for the establishment of robust investor aftercare systems to support businesses after they set up. It also emphasized the need to strengthen credit access for Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the Nigerian economy.
Furthermore, the report highlighted the necessity of harmonising trade rules across state borders to reduce bottlenecks. Upgrading commercial justice processes to resolve disputes faster and improving power reliability specifically for industrial clusters were also listed as critical areas for immediate action.
Princess Zahrah Mustapha Audu, the Director-General of PEBEC, stated that the report provides a solid evidence-based foundation for deeper reforms and strategic policy decisions aimed at enhancing long-term competitiveness across Nigeria.
Federal Agencies Also Graded on Business Facilitation
Alongside the state rankings, PEBEC released its 2025 Business Facilitation Act (BFA) Performance Report. This companion document assessed the compliance of 69 federal Ministries, Departments, and Agencies (MDAs) with mandated transparency and service efficiency standards between January and October 2025.
The Nigerian Content Development and Monitoring Board (NCDMB) topped this federal ranking with an impressive score of 90.6 per cent. It was closely followed by the National Drug Law Enforcement Agency (NDLEA) at 89.3 per cent and the Nigeria Customs Service (NCS) at 86.6 per cent.
Rounding out the top five best-performing MDAs were the Nigerian Communications Commission (NCC) with 85.3 per cent and the Nigerian Ports Authority (NPA) with 84.2 per cent. PEBEC commended these agencies for demonstrating strong compliance with their statutory obligations, optimising digital processes, delivering predictable service levels, and showing improved responsiveness to both citizens and the business community.
Princess Audu urged all MDAs to use the findings of the report to deepen their commitment to providing predictable, technology-driven, and globally competitive services to entrepreneurs and investors nationwide.
