Nigeria, Africa’s largest economy, has immense potential for business growth and investment. However, certain states in the country present significant challenges for entrepreneurs and companies looking to establish operations.
According to various reports and surveys, the worst states in Nigeria to do business are:
- Edo State Ranked 37th out of 37 states, with a score of 4.38, Edo State faces major hurdles in infrastructure, regulatory processes, and overall support for businesses. The state’s hostile business environment, characterized by unnecessary administrative hurdles, unclear regulations, and lack of accountability, stifles growth for companies.
- Enugu State Enugu State ranks 36th among Nigerian states, struggling to provide a conducive atmosphere for businesses to thrive. The state’s poor performance in the Subnational Doing Business report highlights the challenges entrepreneurs face in establishing and growing their ventures in Enugu.
- Kogi State Kogi State is one of only four states that rank worse than Cross River State in terms of business-friendliness. The state’s unfavorable conditions make it an unattractive destination for investors and entrepreneurs looking to expand their operations in Nigeria.
- Delta State Delta State ranks 35th among Nigerian states, facing significant obstacles that deter businesses from setting up shop in the region. The state’s poor performance in various metrics indicates a less-than-ideal environment for companies to succeed.
- Cross River State Cross River State ranks 33rd out of 37 states, with a score of 4.99, below the national average and 6 places worse than its 2021 ranking. The state’s decline in the rankings suggests that the business environment has deteriorated, making it a less attractive option for businesses seeking to establish operations in Nigeria.
These states struggle with inadequate infrastructure, high crime rates, inconsistent government policies, poor access to finance, and other challenges that hinder the growth and success of small and medium enterprises (SMEs).
Addressing these issues and creating a more favorable business climate will be crucial for attracting investment and fostering economic development in these regions.
