FG, PEBEC Push States to Drive Business Reforms, Unlock Investment Growth

Michael Olugbode in Abuja

Nigeria’s drive to reposition its economy as a competitive, investment-friendly destination is increasingly shifting to the states, as the federal government and reform stakeholders intensify pressure on subnational governments to translate policy commitments into measurable outcomes.

This renewed push came to the fore in Abuja, where senior policymakers, development partners, and economic stakeholders gathered for a high-level peer learning workshop convened by the Presidential Enabling Business Environment Council (PEBEC), with a focus on accelerating state-level reforms and improving investment readiness.

At the heart of the engagement was a clear message: Nigeria’s economic transformation will not be achieved from the federal level alone.

Instead, states must take the lead in dismantling bureaucratic bottlenecks, strengthening regulatory frameworks, and creating conditions that attract and sustain private sector investment.

Speaking at the close of the two-day session, Deputy Chief of Staff to the President in the Office of the Vice President, Ibrahim Hadejia, said the country’s economic future depends largely on how effectively state governments implement reforms that directly impact businesses.

He noted that while federal initiatives have laid important groundwork, the real test lies in how subnational governments translate policies into tangible improvements for investors and entrepreneurs.

According to him, states that fail to act decisively risk being left behind in an increasingly competitive global investment environment where capital is both mobile and selective.

The workshop brought together reform champions from across the 36 states and the Federal Capital Territory to share experiences, assess progress, and identify practical strategies for improving the ease of doing business at the subnational level.

Presentations by the PEBEC Secretariat underscored the decisive role of states in shaping Nigeria’s investment outcomes. As the first point of contact for many investors, states control approvals, permits, and business establishment timelines, while also influencing investor experience across the entire investment lifecycle.

The Director General, PEBEC, Princess Zahrah Mustapha Audu said: “National competitiveness rises when state competitiveness rises,” stressing that subnational performance is now a critical determinant of Nigeria’s overall economic outlook.

Despite ongoing reform efforts, participants acknowledged that many states continue to face deep-rooted structural challenges. These include fragmented institutional roles across ministries, departments and agencies, weak coordination in investor-facing processes, and persistent gaps between reform commitments and actual implementation.

Other constraints identified include limited investment promotion capacity, outdated or ineffective digital platforms, weak investor tracking systems, and inadequate mechanisms for aftercare and grievance resolution.

“These gaps at critical touchpoints delay decisions and reduce state competitiveness,” Audu warned, describing them as systemic barriers that must be urgently addressed.

However, the session also highlighted emerging success stories across some states, where targeted reforms have begun to yield measurable gains.

Improvements such as faster approval timelines, stronger institutional credibility, enhanced promotion of investment opportunities, and rising investor confidence were cited as evidence that practical reforms can deliver tangible results.

Stakeholders emphasized that investors are no longer persuaded by policy pronouncements alone, but by real, measurable outcomes—efficient processes, transparency, and regulatory predictability.

In this context, peer learning was identified as a critical driver of reform, enabling states to replicate tested solutions rather than reinventing strategies.

To consolidate gains and scale impact nationwide, PEBEC outlined key reform priorities for states. These include developing clear and compelling investment value propositions, strengthening investment lifecycle management, deploying modern digital platforms as investor gateways, and establishing transparent investment incentive frameworks.

States were also encouraged to implement structured investor aftercare programmes, create one-stop-shop support systems, and adopt regulatory reform tools such as Regulatory Impact Assessments (RIA).

A strong emphasis was placed on data-driven governance, with states urged to track performance indicators, benchmark against peers, and institutionalize reforms to ensure continuity beyond political cycles.

To support implementation, PEBEC is leveraging initiatives such as the State Action on Business Enabling Reforms (SABER) programme, providing technical assistance, diagnostic tools, and peer learning platforms to help states move from reform design to execution.

The integration of feedback mechanisms such as ReportGov into state investment promotion platforms was also highlighted as a means of strengthening accountability and improving service delivery.

Beyond the policy discussions, the broader economic implications of the workshop were clear. Nigeria’s ambition to diversify its economy, attract sustainable investment, and create jobs is closely tied to the strength of its business environment at the subnational level.

With global capital increasingly selective, subnational competitiveness is emerging as a decisive factor in investment decisions.

Participants left the session with a heightened sense of urgency, acknowledging that the window for impactful reform is narrowing amid economic pressures and rising expectations from citizens and investors alike.

As Nigeria seeks to reposition itself as a leading investment destination in Africa, the spotlight is now firmly on its states—not merely as administrative units, but as critical engines of growth whose actions will ultimately shape the country’s economic trajectory.