Lagos State, together with nine other states, has been highlighted as top performers in the recently unveiled 2025 Subnational Ease of Doing Business Report from the Presidential Enabling Business Environment Council (PEBEC).
The states included in this elite group are Kaduna, Oyo, the Federal Capital Territory (FCT), Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa.
The announcement was made during a roundtable discussion with members of the diplomatic community and development partners held in Abuja on March 27.
PEBEC noted that the findings reflect that states enforcing reforms have produced significant enhancements in their business environments, including a a 40 percent decrease in the time required for business registrations and a more than 30 percent boost in land administration efficiency.
The report also highlighted advancements in digital service delivery and conflict resolution.
In a statement issued through the Lagos State Commissioner for Information and Strategy, Gbenga Omotoso, Governor Babajide Sanwo-Olu expressed that the ranking is a testament to the consistent efforts of his administration to attract and retain investments.
He affirmed, "This achievement is a result of our government’s commitment to fostering a conducive climate for both local and foreign investments to flourish and yield profitable outcomes. Our aim is to continuously advocate for further investments and position our state as a prime location for business."
Zahrah Audu, the Director-General of PEBEC, remarked that the results underscore the tangible impacts of sustained reforms across the states.
"These accomplishments are not just statistical figures; they signal to investors that Nigeria is becoming increasingly predictable, transparent, and competitive," she stated.
However, Audu pointed out that the real challenge lies in ensuring that these reforms translate into actual benefits for businesses. She stated, "While progress is important, it alone is not sufficient. The essential question is whether these reforms can lead to accelerated permitting procedures, clearer regulatory frameworks, and an effective allocation of capital, as investments are drawn to stability."
Abubakar Bagudu, Minister of Budget and Economic Planning, emphasized the importance of states and the private sector in achieving Nigeria’s goal of developing a $1 trillion economy.
"We are optimistic that with the right mindset, led by the private sector, we can attain this milestone, underpinned by our economic reforms, which embody our commitment to doing what is right," he said.
Additionally, Lagos State’s Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Bada, attributed the state’s high ranking to its ongoing institutional reforms and adherence to policy consistency.
"Our position as a top performer is not incidental. It is the result of persistent institutional reforms, regulatory discipline, and an understanding that investments prosper in environments marked by clarity, assurance, and continuity," she explained.
Bada also noted improvements in land administration, construction permits, and taxation that have enhanced transparency and minimized delays for businesses, mentioning that low-risk construction permits can now be processed in just 15 working days.
She added that Lagos has dedicated resources to infrastructure development, such as fiber-optic capabilities, transportation systems, and logistics to bolster economic growth and attract investors.
The state has also established effective public-private partnership frameworks that ensure projects are compliant with international standards and provide predictable processes for investors.
In the prior ranking released in December 2025, PEBEC recognized Lagos as the top-performing state with an impressive score of 85.6 percent, followed by Kaduna and Oyo.
The Subnational Ease of Doing Business Report evaluates how Nigeria’s 36 states and the FCT enhance their business competitiveness through reforms encompassing areas such as land management, taxation, infrastructure, trade logistics, and judicial processes.
Nonetheless, challenges remain within the informal sector, which constitutes a significant portion of Lagos' economic activities, as noted in reports.
According to The Punch Newspaper, numerous small-scale vendors, particularly women in major markets like Oyingbo, Mile 12, and Oshodi, face multiple levies imposed by informal agents, often lacking receipts or clear legal justifications.
Such payments, frequently enforced through intimidation, seriously diminish traders' earnings and hinder the business environment's ease at the grassroots level.
Experts have voiced concerns that unregulated and overlapping levies from various authorities could undermine the progress made in improving the business climate if left unaddressed.
Established in 2016, PEBEC aims to eradicate bureaucratic obstacles and enhance the overall business environment in Nigeria.
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