In a significant development that could reshape Nigeria's economic map, Kaduna State has been officially recognized as the nation's second-best state for conducting business. This landmark achievement was unveiled in the 2025 Subnational Ease of Doing Business (EoDB) Report released by the Presidential Enabling Business Environment Council (PEBEC).
Kaduna's Meteoric Rise in the Business Rankings
The report, published on December 5, 2025, places Kaduna State firmly in the runner-up position with a score of 65.1%. This performance sees it trailing only the commercial powerhouse, Lagos State, which maintains its lead with a score of 85.6%. The ranking is the result of a comprehensive, data-driven assessment conducted by PEBEC, evaluating all 36 states and the Federal Capital Territory (FCT).
PEBEC's Director-General emphasized that the report serves as a critical data-driven assessment of each state's progress in implementing reforms, developing infrastructure, and enhancing regulatory efficiency. For investors and entrepreneurs, it provides a clear signal of which regions offer the most predictable and supportive environments for business operations and growth.
What the Ranking Measures
The evaluation framework is rigorous and multi-faceted. States were judged across 16 major indicators, which are further broken down into 36 specific sub-metrics. These critical areas include:
- Electricity supply and general infrastructure
- Digital connectivity and technological readiness
- Efficiency of land administration and property registration
- Taxation processes and regulatory compliance
- Trade logistics and cross-border facilitation
- Commercial justice delivery and dispute resolution
- Direct investor support services
- Availability of skilled labour
Kaduna's ascent to the number two spot is not an accident but the culmination of years of sustained administrative reforms. The state has focused intensely on improving regulatory clarity, streamlining bureaucratic processes, and investing in business-support infrastructure, efforts that are now clearly reflected in its high score.
The New Competitive Landscape for Nigerian States
The 2025 report reveals a dynamic and increasingly competitive landscape beyond the top two performers. Several other states posted impressive scores, indicating a broader national shift towards improving business conditions.
Oyo State followed closely behind Kaduna with a score of 62.7%, demonstrating strong reform momentum. The Federal Capital Territory, Abuja, emerged with 61.0%, while Ogun State, a traditional industrial hub, delivered a solid 59.9%.
The mid-table saw a tight contest, with Enugu and Plateau States each recording an identical score of 56.2%. Ekiti State was not far behind at 55.8%. In the north, Kano State strengthened its regional credentials with a score of 54.8%, and Nasarawa State posted a respectable 53.4%. Together, these states are now defining the cohort of Nigeria's most competitive and business-friendly environments.
Implications for Investors and Nigeria's Economic Geography
This ranking represents a potential turning point for investment flows within Nigeria. For years, investor attention has been heavily concentrated in a few traditional strongholds, primarily Lagos. The performance of Kaduna, Oyo, and others suggests a significant diversification of opportunity is underway.
Kaduna's number two position sends a powerful message to both domestic and international investors: it is now among the most attractive destinations nationwide for new ventures, capital investment, and economic activity. The score is a testament to a predictable and reformed environment, which is a primary consideration for businesses looking to expand or establish new operations.
The collective rise of these states may well redefine the geography of business opportunity in Nigeria. It encourages a shift in focus, prompting investors to look beyond the usual hubs and consider the growing potential and improved governance in other regions. This decentralization of economic attractiveness is crucial for balanced national development and could spur further healthy competition among states to implement business-friendly reforms.
