Lagos State, Nigeria’s commercial capital, has ranked as the country’s top subnational performer in ease of doing business, according to a new nationwide assessment of business environments.
The report was presented in Abuja on Friday, March 28, at the Reform and Diplomatic Roundtable 2026, hosted by the Presidential Enabling Business Environment Council in partnership with UK International Development and the Nigeria Economic Stability and Transformation Programme.
Lagos clinched the top spot with a strong performance across regulatory readiness, infrastructure, and institutional transparency. It was followed by Kaduna, Oyo, the Federal Capital Territory, Ogun, Enugu, Plateau, Ekiti, Kano and Nasarawa.
The report underscores that Nigeria’s economic path is increasingly determined by how effectively state governments tackle local bottlenecks affecting day-to-day business activities. While federal reforms remain critical, it stresses that real progress must happen at the state level, where businesses actually operate.
“Nigeria’s business environment remains central to the country’s economic resilience and long-term growth prospects. With more than 39 million Micro, Small and Medium-sized Enterprises (MSMEs) operating across states, how each subnational is performing has never been more important,” the report stated.
The assessment also functions as an evidence-based instrument for monitoring reform progress and pinpointing high-impact interventions.
“This assessment adds to that goal by offering more than a scorecard. It provides a grounded, evidence-based view of how Nigeria’s states are enabling businesses, where progress is emerging and where challenges continue to hold firms back. The analysis relies primarily on secondary data that captures the adoption of technology, automation and digitalisation in public service delivery,” the report added.
According to the report,
Lagos claimed the top rank thanks to its advanced business environment, underpinned by relatively reliable electricity, efficient land administration, and functional commercial courts. Key strengths include broad market access, a skilled workforce, effective contract enforcement, and robust infrastructure, including airports and rail networks.
However, the report highlighted key gaps, such as challenges with touting and loitering, limited investor aftercare systems, and inconsistent digital connectivity in non-urban areas.
“The presence of unauthorized individuals loitering around key business and logistics touchpoints creates an environmental nuisance and introduces significant security and safety concerns for commercial operators and the public. This negatively impacts the predictable flow of commercial activities, particularly those engaged in transport and trade, creating an insecure environment,” it stated.
