Report names Lagos best state for doing business

A new report has ranked Lagos State as the best place to do business in Nigeria.

The report was presented in Abuja during the Reform and Diplomatic Roundtable 2026, organised by the Presidential Enabling Business Environment Council together with development partners.

According to the report, Lagos came first because it has better infrastructure, clearer business regulations, and more transparent institutions compared to other states.

Other top-ranking states include Kaduna, Oyo, the Federal Capital Territory (FCT), Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa.

What the report says

The report explains that Nigeria’s economic growth depends a lot on how well each state supports businesses. Even though federal policies are important, most business activities happen at the state level.

It also notes that Nigeria has over 39 million small and medium-sized businesses (MSMEs), so improving business conditions in each state is very important.

The report is designed to track progress and help identify areas that need improvement.

How states were assessed

The ranking was based on 16 key areas, including:

Electricity supply

Infrastructure

Internet and digital access

Land administration

Tax systems

Trade and logistics

Access to justice

Support for investors

Workforce development

These were further broken down into 36 detailed indicators to measure how well states perform in real terms.

Why Lagos ranked first

Lagos performed well because of:

Better electricity access

Efficient land systems

Functional commercial courts

Strong infrastructure like airports and rail

Skilled workforce

Good market access

Challenges in Lagos

Despite its top ranking, Lagos still has some problems, such as:

Touting and loitering in business areas

Weak support systems for investors after they arrive

Poor internet access in some non-urban areas

These issues can affect business operations and security.

Regional performance

The report shows uneven performance across regions:

South-West: 4 states in top 10

North-Central: 3 states

North-West: 2 states

South-East: 1 state (Enugu)

North-East and South-South: No states in top 10

About Enugu State

Enugu, the only South-East state in the top 10, performed well in:

Digital connectivity

Electricity

Workforce development

Social infrastructure

However, it still struggles with:

Access to credit

Support for investors

Key issues and recommendations

The report highlights that slow and unclear business registration processes discourage many small businesses from becoming official.

To improve the business environment, it suggests:

Digitising land processes

Improving access to loans

Expanding courts for business disputes

Removing trade barriers between states

Improving transport and logistics

Strengthening internet access

Reforming the electricity sector

Creating one-stop investment centres

Supporting alternative energy solutions

Setting up better systems to handle complaints