Lagos State has emerged as the best place to do business in Nigeria, according to a recent report. The report, presented at the Reform and Diplomatic Roundtable 2026 in Abuja, ranked Lagos first due to its superior infrastructure, clearer business regulations, and more transparent institutions compared to other states. The top-ranking states also include Kaduna, Oyo, the Federal Capital Territory, Ogun, Enugu, Plateau, Ekiti, Kano, and Nasarawa.
The report notes that Nigeria's economic growth heavily relies on the support each state provides to businesses. Although federal policies are crucial, most business activities occur at the state level. The report highlights the significance of improving business conditions in each state, given the country's over 39 million small and medium-sized businesses.
The ranking was based on 16 key areas, including electricity supply, infrastructure, internet and digital access, and workforce development. These areas were further broken down into 36 detailed indicators to measure the performance of each state.
Lagos's success can be attributed to its better electricity access, efficient land systems, functional commercial courts, and strong infrastructure. However, despite its top ranking, Lagos still faces issues such as touting and loitering in business areas, weak support systems for investors, and poor internet access in some non-urban areas.
The report also reveals uneven performance across regions, with the South-West region having four states in the top 10 and the South-East region having only one state, Enugu, in the top 10.
The report highlights the stark reality that Lagos, despite its top ranking, still struggles with issues that undermine its business environment. The presence of touting and loitering in business areas is a significant concern, and the lack of support systems for investors after they arrive is a major deterrent. The fact that Enugu, the only South-East state in the top 10, still struggles with access to credit and support for investors underscores the need for more concerted efforts to improve the business environment across the country. The report's recommendations, including digitising land processes and improving access to loans, are crucial steps towards creating a more conducive business environment for small businesses.
