Reported by: Ijeoma G | Edited by: Jevaun Rhashan
Lagos State has emerged as the top state for ease of doing business in Nigeria, according to a newly released subnational ranking that evaluates the country’s business environment across all 36 states and the Federal Capital Territory.
The ranking was unveiled in Abuja during the 2026 Reform and Diplomatic Roundtable, organised by the Presidential Enabling Business Environment Council in collaboration with international development partners. The report places Lagos firmly in first position, ahead of other high-performing states including Kaduna, Oyo, the FCT, and Ogun.
The assessment is based on a comprehensive framework measuring how conducive each state is for business operations. It uses 16 major indicators and dozens of sub-indicators, covering areas such as access to electricity, infrastructure quality, digital connectivity, taxation systems, land administration, trade logistics, dispute resolution, and investor support systems.
Lagos’ top ranking reflects its long-standing position as Nigeria’s commercial hub. The state demonstrated strong performance across several critical areas, particularly infrastructure development, regulatory efficiency, and institutional transparency. Analysts say these factors combine to create a more predictable and stable environment for businesses compared to many other parts of the country.
Stone Reporters note that Lagos’ dominance is also closely tied to its economic structure. The state hosts Nigeria’s busiest ports, largest consumer market, and a concentration of corporate headquarters, financial institutions, and technology firms. Its economy, estimated to be among the largest in Africa at the city level, continues to attract both domestic and foreign investment.
Beyond infrastructure, the report highlights Lagos’ relatively advanced digital ecosystem and administrative systems. The presence of a functional land administration process, commercial courts, alternative dispute resolution mechanisms, and one-stop investment support centres has contributed significantly to its ranking.
However, the report also identifies persistent challenges within Lagos’ business environment. Issues such as land processing delays, high right-of-way charges, and bureaucratic bottlenecks continue to create friction for investors. In addition, uneven digital connectivity and operational costs remain concerns for businesses operating outside the state’s core urban zones.
The broader findings of the report point to significant disparities across Nigeria. While Lagos and a handful of other states show strong reform-driven progress, many states continue to struggle with weak infrastructure, limited access to credit, poor regulatory frameworks, and security challenges that hinder business growth.
Stone Reporters note that the emphasis on subnational rankings reflects a growing recognition that economic competitiveness in Nigeria is increasingly shaped at the state level rather than solely by federal policies. Businesses interact more directly with state institutions for permits, taxation, land acquisition, and dispute resolution, making local governance a critical determinant of investment success.
The report also suggests that states implementing targeted reforms—particularly in digital governance, regulatory transparency, and service delivery—are seeing measurable improvements in attracting investment and reducing the cost of doing business.
For investors, Lagos’ top ranking reinforces its status as the preferred destination for business expansion in Nigeria. For policymakers, it sets a benchmark for other states seeking to improve their economic competitiveness and attract capital.
As Nigeria prepares for future economic growth and diversification, the ability of other states to replicate Lagos’ strengths while addressing their own structural weaknesses will likely determine the country’s overall business climate.
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