Nigeria’s commercial capital has added another feather to its cap. Lagos State has been ranked the best subnational entity in the country for ease of doing business, according to a fresh national assessment that scrutinised business conditions across all 36 states and the FCT.
The report was unveiled on Friday, March 28, in Abuja at The Reform and Diplomatic Roundtable 2026, an event put together by the Presidential Enabling Business Environment Council alongside UK International Development and the Nigeria Economic Stability and Transformation Programme. The timing is significant given how loudly Nigeria’s business community has been crying out for structural improvements at both federal and state levels.
Lagos came out on top, trailed by Kaduna, Oyo, the FCT, Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa in that order.
Why Lagos Won
The report credits Lagos with running one of the country’s most advanced sub-national business environments. Relatively dependable electricity supply, a functioning land administration system, efficient commercial courts, strong market access, a skilled workforce, and solid infrastructure including airports and rail networks all worked in its favour.
That said, the report was not entirely flattering toward the state. It flagged the persistent problem of touts and unauthorised individuals loitering around key business and logistics hubs, warning that the situation creates security concerns and disrupts the smooth flow of commercial activity. Weak investor aftercare systems and patchy digital connectivity outside urban centres were also identified as areas needing urgent attention.
The Bigger Picture
At the heart of the report is a straightforward argument: federal reforms alone cannot move the needle on Nigeria’s business environment. Real change has to happen at the state level, where the daily friction of running a business is actually felt.
The report put it plainly, noting that with over 39 million Micro, Small and Medium-sized Enterprises spread across the country, how each state performs on business-enabling conditions has never carried more weight than it does right now.
The assessment framework covered 16 indicators broken down into 36 sub-indicators, touching on everything from electricity access and digital connectivity to land administration, taxation, trade logistics, justice delivery, and workforce development. Rather than relying on perception surveys, the report leaned on secondary data tied to actual service delivery outcomes, giving it a more grounded feel than a typical policy scorecard.
A Country Divided
One of the more telling findings is the regional imbalance in the top 10. The South-West dominated with four states making the cut, while the North-Central contributed three and the North-West two. The South-East had just one representative in Enugu, which ranked sixth on the back of solid scores in digital connectivity, electricity access, and workforce development, though it still struggles with investor aftercare and credit access.
Perhaps most striking is what is missing from the list entirely. Not a single state from the North-East or South-South made the top 10. In a country where regional development gaps are already a sensitive topic, that absence is hard to ignore.
What Needs to Change
The report closes with a ten-point reform agenda aimed at lifting business conditions nationwide. The recommendations cover a wide range of areas including digitising land administration, expanding access to credit through development finance institutions, setting up more commercial and small claims courts, removing barriers to interstate trade, building out investor aftercare units, improving logistics infrastructure, and rolling out one-stop investment centres across states.
Company registration also came under scrutiny. The report noted that slow and opaque registration processes continue to keep millions of MSMEs in the informal sector, a problem that has been raised repeatedly over the years with limited progress to show for it.
The rankings are expected to serve as a live tracking tool going forward, giving policymakers, investors, and business owners a clearer picture of where reforms are taking hold and where the gaps remain stubbornly wide.
