Why Kano, Kaduna, Nasarawa, Plateau, FCT emerged most business-friendly states

Targeted reforms in digital governance, faster business registration processes, improved dispute resolution mechanisms, and stronger investor support systems have helped position four Northern States and the Federal Capital Territory (FCT), Abuja among Nigeria’s most business-friendly environment.

According to the latest ranking released by the Presidential Enabling Business Environment Council (PEBEC), Kaduna State, Kano, Plateau, Nasarawa States and the Federal Capital Territory, ranked among the Country’s top 10 most business-friendly locations.

The States were recognised for implementing reforms that reduce the cost and complexity of doing business. These measures include streamlining regulatory procedures, digitising government services, improving access to land and strengthening systems for resolving commercial disputes.

Their inclusion as top-ranked States reflects a gradual shift in Nigeria’s investment landscape, with regions outside traditional commercial hubs gaining attention from investors.

While Lagos State retains its position as the Country’s leading business destination, the economic viability of said Northern States underscores growing regional competitiveness. Other that made the top-ranked States include Oyo, Ogun, Enugu and Ekiti States.

Plateau’s tax policy boosts ranking
Plateau State has emerged as one of the country’s leading destinations for ease of doing business, with its tax-friendly policies cited as a major factor behind its ranking despite lingering security concerns.

When BusinessDay sought comments from the State’s Commissioner for Commerce, the official was unavailable.

However, a staff member of the Ministry, who spoke on condition of anonymity, said the government had deliberately structured its tax system to support businesses, particularly small and medium enterprises.

“Despite the insecurity challenges, Plateau remains a business-friendly State where investors can still operate with relative ease,” the source said.

“Our tax system is designed to support businesses, especially SMEs. That is why we have attained this ranking, and we advise other states not to introduce taxes that could drive businesses away,” the official added.

The source noted that the State’s favourable tax regime continues to sustain its strong performance in the ease-of-doing-business ranking, even as authorities work to address security challenges across the State.

Reform signals growing investor confidence as the PEBEC ranking evaluates States across 16 indicators, including infrastructure, electricity, taxation, justice delivery and digital services. Increasingly, investors are using the index as a benchmark to determine where to deploy capital.

For the Northern States listed, analysts say their performance reflects deliberate policy choices.

Kaduna State and the Federal Capital Territory have prioritised digitisation and administrative efficiency, making it easier to start and operate businesses.

Meanwhile, Kano and Plateau States have leveraged their commercial and geographic advantages to improve market access and investor support systems, while Nasarawa State has focused on simplifying land administration and strengthening institutional frameworks.

Musa Suleiman Shanono, Kano State Commissioner for Planning and Budget, said the reforms embaeked upon the Governor Abba Kabir Yusuf’s Administration in the State acummulated in measurable outcomes.

PEBEC notes that reform-driven States have reduced business registration timelines by up to 40% and improved land administration efficiency by more than 30%—factors that significantly lower barriers to entry and boost investor confidence.

However, Mohammed Aliyu Aminu, Professor of Economics at Bayero University Kano, said the real challenge for the States is translating improved rankings into tangible economic growth.

“With stronger regulatory frameworks now in place, they are better positioned to attract both local and foreign investment, particularly in sectors such as manufacturing, agriculture and logistics.

“State Governments are also expected to capitalise on their improved rankings by intensifying investment promotion efforts, strengthening partnerships with development agencies and engaging the diplomatic community to channel global capital into their economies”, Aminu argued.

Despite the progress, challenges remain.
The PEBEC report highlights persistent issues such as delays in land processing, high right-of-way charges and bureaucratic bottlenecks that could still discourage investors.

Infrastructure deficits, especially in electricity supply and transport networks, vary significantly across States, particularly outside major urban centres.

Analysts say addressing these gaps will be crucial to sustaining reform gains and ensuring that improved rankings translate into real business activity.

The emergence of Northern States in the top 10 ranking, offers important lessons for others seeking to improve their business environments.

Consistent policy implementation, investment in digital systems and the establishment of investor-friendly institutions—such as one-stop shops and grievance redress mechanisms—have proven effective in improving the business climate.

As competition among subnational economies intensifies, the latest report by the Presidential Enabling Business Environment Council (PEBEC) signals that with sustained reforms and political commitment, regions once considered peripheral can reposition themselves as credible and competitive destinations for investment. (BusinessDay)