How attractive a Nigerian state is to investors is no longer just about roads, electricity, and transport links. A new report shows that digital infrastructure has become just as important, and in some cases more important, in determining where businesses choose to set up and grow.
The State Action on Business Enabling Reforms Report, known as the SABER Report, has identified digital governance as a decisive factor in business competitiveness across Nigeria’s states. The report assessed how states are performing across areas like online government services, digital land administration, broadband infrastructure, and 5G connectivity, and found that the gap between digitally advanced states and those lagging behind is widening.
Lagos State ranked first in the overall assessment, described in the report as offering one of the most advanced and competitive business environments in the country. The state combines reliable electricity, functional land administration, efficient courts, accessible grievance-redress systems, and a highly skilled workforce alongside its digital services.
The report specifically identified Smart City Tech, covering FinTech, GovTech, and Wealth-Tech, as among Lagos’s key investment opportunities, reflecting how deeply digital innovation has become tied to the state’s economic identity.
But the report did not let Lagos off the hook entirely. It noted that digital connectivity in the state remains uneven, with network coverage concentrated in urban centres while rural and peri-urban areas lag significantly behind. The report said this limited rural interconnectivity is restricting e-commerce adoption for businesses in those areas, ultimately affecting their competitiveness.
Don't Miss This Article
Among the other top-ranked states, three names stand out for their digital governance progress.
Kaduna State, ranked second nationally, was recognised for integrating digital infrastructure into its broader economic development strategy. The report noted that Kaduna has adopted recommended Right of Way fees for laying fibre cables, is advancing online service automation, and has 5G infrastructure in place.
The report described Kaduna’s manufacturing base, agro-processing industry, and educational institutions as being complemented by its commitment to digital governance, creating a more efficient operational environment for investors. In plain terms, digital tools are making it easier to actually do business there, not just talk about doing business.
Don't Miss This Article
Oyo State also emerged as a strong performer, with the report citing favourable Right of Way fees, digitised government services, and 5G coverage as key contributors to its improved digital infrastructure. These measures work alongside Oyo’s GIS-backed land administration system, reliable electricity supply, and structured tax administration.
Enugu State was similarly recognised for leveraging technology to improve governance and investment readiness. The report highlighted Enugu’s combination of digital connectivity, a functional GIS-backed land administration system, a one-stop investment shop, and workforce development initiatives. The state has also identified the digital economy as one of its strategic priorities for accelerating growth through public-private partnerships.
Ekiti State was highlighted for embracing digital governance through favourable Right of Way fees, digitised government services, and 5G-enabled infrastructure. The report noted these measures complement the state’s reliable electricity supply and GIS-supported land administration, helping strengthen the business environment despite persistent structural challenges.
The Federal Capital Territory featured prominently in the report’s recommendations rather than its praise. The assessment urged the FCT Administration to digitalise its land registration processing and verification systems, and to upgrade its one-stop shop into a comprehensive digital gateway that would streamline business registration and provide integrated end-to-end services across multiple agencies. The implication is clear: Nigeria’s capital is still playing catch-up on digital governance relative to some of the leading states.
The SABER Report was direct about the shift happening in how investors evaluate Nigerian states. Digital public infrastructure, meaning the systems that let businesses interact with government online, process land transactions digitally, obtain permits through a portal, and access reliable fast internet, has become as critical to investment attractiveness as traditional infrastructure like roads and electricity.
The report noted that digital reforms across the top-performing states are extending beyond simply automating government services. They now include GIS-supported land administration, digital grievance-redress mechanisms, one-stop investment centres, and broadband expansion. Together, these reduce bureaucracy, improve transparency, and lower the cost of doing business in ways that physical infrastructure alone cannot.
Don't Miss This Article
Despite the progress, the SABER Report issued a clear warning that no state should mistake digital tools for a complete solution. It identified recurring institutional weaknesses across even the highest-performing states, including poor investor aftercare, limited access to finance, weak commercial dispute-resolution systems, transport bottlenecks, and inadequate electricity supply.
Kaduna, Oyo, Enugu, and Ekiti were all noted as facing challenges in areas such as investor support, finance, and interstate trade, despite their strong performances in digital governance. Being good at GovTech is not enough if a business still cannot resolve a commercial dispute efficiently or access credit to grow.
To consolidate the gains made so far, the SABER Report made several concrete recommendations. These include extending fibre optic networks and encouraging last-mile connectivity to make high-speed internet more reliable and cut operational friction. The report also called for wider deployment of digital investor issue-resolution platforms, judicial automation, online government portals, and integrated regulatory platforms.
The report stated this recommendation plainly: upgrade digital infrastructure by extending fibre networks and incentivising last-mile connectivity, which will make high-speed internet more reliable, cut operational friction, and help businesses access markets more easily.
What the SABER Report ultimately describes is a new kind of competition between Nigerian states. Geography and natural resources still matter. But increasingly, the states that will attract the most investment and create the most jobs are the ones that make it easiest to interact with government digitally, register land reliably, obtain permits without friction, and access fast internet from anywhere in the state, not just its capital. The states that understand this early are already pulling ahead.
