When embarking on a business venture in Nigeria, the selection of the most suitable state can make a crucial difference in the success and growth of the enterprise. While Nigeria, as a whole, presents a multitude of opportunities, there are specific states that outshine others as highly favorable destinations for business ventures.
Conversely, some states may present challenges and obstacles that entrepreneurs need to consider carefully. In a report, Presidential Enabling Business Environment Council (PEBEC) revealed that the report highlighted six key indicators crucial for business success in Nigeria. These indicators encompassed infrastructure, a secure and stable environment, transparency and accessibility of information, regulatory environment, skills and labor, and economic opportunities.
In this guide, we will explore the best and worst states to do business in Nigeria, offering valuable insights to assist in making informed and strategic choices.
The Best States to do business in Nigeria
According to the 2023 Subnational Ease of Doing Business (EoDB) report by the Presidential Enabling Business Environment Council (PEBEC), certain states in Nigeria have emerged as the most business-friendly. These states offer a conducive environment for business operations, making them ideal destinations for entrepreneurs and investors seeking opportunities in the country.
Gombe
Gombe State has once again secured its position as the number one state in Nigeria for ease of doing business, with an impressive score of 7.15, according to the latest report by the Presidential Enabling Business Environment Council (PEBEC). This marks the second consecutive year that Gombe has clinched the top spot, reaffirming its commitment to providing a conducive and friendly environment for businesses to thrive.
The state’s consistently high ranking reflects its dedication to improving its business infrastructure, regulatory frameworks, and overall support for entrepreneurs and investors. With Gombe leading the pack among the states in the Northeast region, it has become an increasingly attractive destination for both local and international business ventures. As Gombe continues to foster a business-friendly atmosphere, it sets an exemplary standard for other states in the country to follow, driving economic growth and prosperity for the nation as a whole.
Jigawa
Jigawa State has firmly established itself as one of the best states for business, with an impressive score of 6.79, positioning it as the second-best in the Ease of Doing Business report. This significant achievement is a testament to Jigawa’s commitment to fostering a favorable business environment. Notably, in the 2021 report, Jigawa State was ranked 3rd, indicating a remarkable advancement of one rank.
This upward trajectory reflects the state’s continuous efforts in enhancing its infrastructure, regulatory processes, and support for businesses. As Jigawa State continues to rise in the ranks, it becomes an increasingly attractive destination for investments and economic opportunities.
Sokoto
Sokoto State has emerged as one of the best states for business, securing an impressive score of 6.79 and claiming the third position in the Ease of Doing Business report. This noteworthy achievement highlights the state’s commitment to creating a conducive environment for entrepreneurs and investors.
With its favorable ranking, Sokoto State has proven its dedication to enhancing business infrastructure, streamlining regulatory processes, and providing support to foster economic growth.
The worst states to do business in Nigeria
This same report showed some states in Nigeria which have proven to be the most challenging and unfavorable for conducting business. These states have probably created a burdensome environment for entrepreneurs and investors, making them highly undesirable destinations for any business venture.
Edo
Edo State has been designated as the worst state for business, as indicated by its bottom position in the latest sub-national ease of doing business ranking conducted and published by PEBEC. In the report, Edo State ranked a disappointing 37th, posting the lowest performance among all states in the country.
With a low score of 4.38, Edo State has faced challenges in crucial areas affecting businesses, such as infrastructure, regulatory processes, and overall support. This ranking serves as a cautionary signal to potential investors, urging careful consideration when venturing into business in Edo State, as it currently presents significant obstacles and limitations for entrepreneurial success.
Enugu
Enugu State has garnered the undesirable distinction of being ranked as one of the worst states for business, securing the 36th position in the latest sub-national ease of doing business ranking. With this relatively low ranking, Enugu State faces significant challenges in providing a conducive environment for businesses to thrive.
The report highlights areas where improvements are needed, such as infrastructure development, regulatory processes, and overall support for entrepreneurs. For potential investors and businesses considering ventures in Enugu State, this ranking serves as a cautionary signal, urging careful evaluation of the state’s business climate and potential obstacles that may hinder their success and growth in the region.
Delta
Delta State has been categorized as one of the worst states for business, securing the 35th position in the latest sub-national ease of doing business ranking. With this relatively low ranking, Delta State faces significant challenges in creating a favorable environment for business growth and investment.
The report highlights deficiencies in critical areas such as infrastructure, regulatory processes, and overall support for entrepreneurs. For potential investors and businesses considering ventures in Delta State, this ranking serves as a cautionary indication, urging thorough evaluation of the state’s business climate and potential hindrances that may impede their success and profitability in the region.
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Source: businesselitesafrica.com
