PEBEC canvasses global capital for Nigeria’s top 10 reform states

…Lagos tops ease of doing business index

The Presidential Enabling Business Environment Council (PEBEC) is ramping up efforts to channel global capital into Nigeria’s most reform-driven states, using its 2025 subnational ease of doing business rankings to position top performers as investment destinations.

Lagos State leads the pack, ranked Nigeria’s most business-friendly state and setting the pace for others seeking to attract domestic and foreign investment.

The rankings were presented at a high-level roundtable convened by PEBEC alongside the British High Commission, UKAid and the Nigeria Economic Stability and Transformation (NEST) programme, bringing together diplomats and strategic partners as part of a broader push to connect capital with reform-ready states.

Zahrah Mustapha Audu, director general of PEBEC, said the roundtable reflects a deliberate shift toward connecting reform progress with actual investment outcomes, positioning Nigeria’s most competitive states as viable destinations for global capital.

“Today’s engagement is anchored on a singular, compelling objective: To connect global capital to Nigeria’s most reform-ready subnational economies and to translate reform progress into tangible, bankable investment opportunities,” she said, adding that the initiative marks a broader effort to reshape how investors evaluate opportunities in the country.

She noted that Nigeria is entering a defining phase where macroeconomic stabilisation, regulatory reforms, and subnational competitiveness are beginning to align, supported by data-driven insights across all states and the Federal Capital Territory.

According to her, early gains from reform-driven states—including faster business registration, improved land administration, and more efficient digital services—signal a shift towards a more predictable and transparent business environment, with the top-performing states demonstrating measurable improvements in efficiency, lower transaction costs, and stronger investor confidence.

The report, released late last year and seen by BusinessDay, assessed the states using 16 indicators spanning electricity access, infrastructure, digital connectivity, land administration, justice delivery, taxation, trade logistics, investor support, crisis resilience, skilled labour, and other regulatory factors.

Each indicator was further broken down into 36 sub-indicators, weighted based on their relevance and impact, with analysis drawn from verified data across government agencies and regulatory bodies.

PEBEC, established in 2016 to reduce bureaucratic constraints and improve competitiveness, has increasingly shifted focus to subnational reforms where most businesses operate. With more than 39 million micro, small and medium enterprises across Nigeria, state-level performance is becoming central to investment decisions.

“This report goes beyond a simple scorecard,” the council notes, “it provides an evidence-based view of how states are enabling businesses, highlights emerging reforms, and identifies friction points that still hinder firm growth.”

Lagos’ position is anchored on strong market access supported by operational one-stop shops, clear business incentives, and a deep pool of skilled labor from its tertiary institutions. Contract enforcement is strengthened through the commercial court and multi-door courthouse system, while investments in airports, cargo facilities, rail lines, and renewable energy improve efficiency. Administrative bottlenecks, including land processing timelines and right-of-way fees, persist but have not significantly dampened investor interest.

Kaduna state ranked second, leveraging its position as a manufacturing, agro-allied, and education hub in the North-West. Its performance is supported by strong infrastructure, competitive digital connectivity, and efficient one-stop shops, although gaps remain in electricity access and grievance redress mechanisms.

Oyo state placed third, benefiting from reliable electricity, digital services, functional transport links, and a strong talent base, even as the absence of commercial courts and limited investor aftercare constrain its overall attractiveness.

The Federal Capital Territory ranked fourth, supported by operational small-claims courts, export facilitation, and effective grievance redress systems, though challenges persist in electricity regulation, access to credit, and workforce depth.

Ogun state, in fifth place, reflects a steadily improving business climate, supported by reliable electricity, expanding digital services, a GIS-backed land system, clear tax processes, and functional grievance channels. Export-import facilitation and a state-backed chamber of commerce further support business activity, though limitations in credit access, commercial courts, and investor aftercare continue to weigh on its competitiveness.

Enugu, ranked sixth, combines a functional land administration system, operational small-claims courts, and an active one-stop shop, but infrastructure gaps, weak land processing timelines, and lack of access to credit constrain its investment appeal.

Plateau state placed seventh, with strengths in power supply, digital connectivity, and small-claims court efficiency, alongside functional grievance systems. However, limited market access, slow land processes, and a narrow skilled labor pipeline reduce its competitiveness.

Ekiti state, eighth, demonstrates progress in electricity provision, digital services, and land administration, supported by clear tax processes and social protection systems. However, slow land processing, absence of commercial courts, and limited access to finance continue to pose challenges.

Kano state ranked ninth, reinforcing its position as a major commercial and agricultural hub in northern Nigeria. The state benefits from strong export-import facilitation, digital connectivity, and a functional grievance redress mechanism, though constraints in electricity access, contract enforcement, and investor aftercare remain.

Nasarawa completed the top 10, showing strengths in digital connectivity, small-claims courts, market access, and tax systems. However, challenges around land administration, electricity supply, dispute resolution, and credit access persist, limiting its overall business environment.

To sustain reform momentum, PEBEC identified key priorities, including strengthening investor aftercare systems, improving access to credit for MSMEs, harmonising interstate trade processes, expanding dispute resolution mechanisms, and enhancing electricity reliability for production clusters.

The report underscores that Nigeria’s economic trajectory will increasingly depend on how effectively states implement reforms that reduce friction, improve transparency, and attract investment.
“Lagos’ top ranking sets a high benchmark, while the collective performance of the top 10 states illustrates how targeted investments in infrastructure, skilled labor, regulatory efficiency, and investor support can enhance confidence, attract investment, and drive economic growth across Nigeria.”

In her remarks, Audu said the rankings mark a turning point in how investors assess opportunities across Nigeria, with improved data offering greater clarity on risk and returns.

She noted that investors can now compare performance across states using standardised metrics, enabling more informed decisions, while early outcomes already point to improvements in business registration timelines, land administration, and digital service delivery.

Audu emphasised the need to move from reform measurement to tangible outcomes. “This roundtable marks a critical transition—from diagnostics to deployment, from reform to results, and from potential to performance,” she said.

She added that sustained execution will determine whether reforms translate into real economic gains. “Capital flows where certainty grows,” she said, highlighting the importance of consistent regulatory frameworks and service delivery.

She also outlined ongoing efforts to strengthen regulatory coordination, improve feedback systems, and deepen reforms at the state level, noting that collaboration with investors and development partners will be key to translating reform gains into growth and job creation.

Atiku Bagudu, minister of budget and economic planning, said Nigeria’s reform trajectory is anchored on a private sector-led model supported by structural adjustments aimed at improving transparency and investor confidence.

He noted that recent policy shifts are beginning to reposition the economy for sustainable growth, with states playing a central role in driving competitiveness and investment.

“Capital flows where certainty grows,” he said, stressing that consistency in policy and regulation remains essential for attracting large-scale investment.

Bagudu added that achieving President Tinubu’s ambition of building a $1 trillion economy by 2030 will depend on stronger coordination across all levels of government and improved engagement with global investors. “We want people who have a place in Nigeria to become enormously wealthy,” he said, pointing to the country’s market size and untapped potential.