The Nigerian Presidential Council PEBEC has released a comprehensive ranking of states based on their 'Ease of Doing Business' metrics, shedding light on the country's business environment and the challenges faced by entrepreneurs. The report highlights Lagos as the clear leader, with a substantial 85.6% performance score, leaving other states trailing behind. However, the study also reveals a stark contrast in performance, with Kaduna scoring only 65.1%.
Among the top five, Oyo, the Federal Capital Territory (FCT), and Ogun occupy the third, fourth, and fifth positions, respectively, with scores of 62.7%, 61.0%, and 59.9%. Enugu, Plateau, Ekiti, Kano, and Nasarawa make up the top 10, showcasing a competitive landscape. The PEBEC's 2025 index is a meticulous assessment, considering 16 indicators and 36 sub-metrics, including electricity reliability, taxation transparency, digital governance, land administration, logistics efficiency, commercial justice delivery, investor support, and skilled labor readiness.
The Director General of PEBEC, Princess Zahrah Mustapha Audu, emphasizes the significance of this ranking, indicating that some states are transitioning from policy rhetoric to implementation. This is particularly evident under the $750 million State Action on Business Enabling Reforms (SABER) program, aimed at boosting subnational competitiveness. However, the report also serves as a cautionary tale, highlighting the persistent gaps in investor aftercare systems, interstate trade frameworks, power stability, and MSME financing channels across most states.
To address these challenges, PEBEC urges governors to prioritize five critical reforms. These include overhauling commercial justice processes, stabilizing power for industrial and SME clusters, establishing functional post-investment support mechanisms, harmonizing interstate taxation and trade rules, and eliminating logistics bottlenecks affecting cross-state trade. The Council emphasizes that these reforms are essential for attracting productive capital rather than PR-driven partnerships.
PEBEC's latest publication is more than just a ranking; it's a reform compliance audit with far-reaching implications. It will directly influence state eligibility for federal incentives, global investment engagement, and future development financing allocations. The verdict is clear: while Lagos sets the benchmark, most states struggle with bureaucratic hurdles, ad hoc taxation, and inconsistent regulations, making investment and expansion risky endeavors. The 2025 Subnational EoDB Report, therefore, serves as a critical foundation for policy action, investment decisions, and long-term competitiveness across Nigeria.
