Oyo State has once again earned national acclaim as the Presidential Enabling Business Environment Council (PEBEC), a Federal Government agency, ranked it among Nigeria’s top three best-performing sub-national economies in the 2025 Subnational Ease of Doing Business Report.
The recognition, which closes the year on a high note for Governor Seyi Makinde’s administration, reinforces Oyo’s growing reputation as one of the country’s most economically vibrant and investor-friendly states.
Oyo State’s Rise in the Ease of Doing Business Ranking
According to the 2025 Ease of Doing Business Report, Oyo State’s sustained economic expansion, infrastructural growth, and business-friendly policies have propelled it into the top three among Nigeria’s 36 states and the Federal Capital Territory.
The ranking reflects the state’s steady climb in key indices such as transparency, access to information, infrastructure development, and market regulation.
The Presidential Enabling Business Environment Council (PEBEC), which conducts the annual sub-national ranking, evaluates how conducive each state’s environment is for business operations and investment.
For Oyo, the 2025 results are not merely a stroke of luck but a culmination of deliberate economic reforms, smart policy frameworks, and consistent governance.
Commissioner for Information, Prince Dotun Oyelade, reacting to the development, described the ranking as “a well-deserved validation of Oyo’s economic transformation and strategic leadership.”
He said it was no surprise that Oyo continues to lead, given its record-breaking performance in fiscal management, infrastructure delivery, and private-sector partnerships
The Makinde Administration’s Economic Blueprint Paying Off
Since assuming office in 2019, Governor Seyi Makinde has implemented what experts now describe as one of the most consistent and measurable subnational economic reform agendas in Nigeria.
Instead of relying on arbitrary tax hikes, the administration focused on broadening the state’s economic base through targeted investments in agribusiness, tourism, and infrastructure development.
Commissioner Oyelade noted that the results are evident in the state’s Internally Generated Revenue (IGR), which surged from less than ₦15 billion annually in 2019 to ₦65 billion in 2024, with a projection to hit the ₦100 billion milestone by the end of 2025.
“This growth is not accidental,” he explained. “Oyo State expanded its economy by building roads that connect farms to markets, empowering small and medium-scale enterprises, and making the business environment predictable for investors. That’s what attracted PEBEC’s recognition.”
Indeed, the state’s decision to maintain a stable tax policy has boosted investor confidence.
Businesses in the state now enjoy reduced bureaucratic bottlenecks and improved access to government services, while local entrepreneurs benefit from structured agricultural schemes and improved credit facilities.
Ease of Doing Business Enhanced Through Infrastructure and Human Capital Investment
One of the pillars of Oyo State’s improved Ease of Doing Business ranking is its aggressive investment in infrastructure.
Oyelade revealed that since 2019, the state has completed 411 kilometres of roads, with an additional 319 kilometres currently under construction.
These road projects have created vital economic corridors that connect major production zones to trade hubs and cities.
Strategic projects such as the Ibadan–Iseyin, Oyo–Iseyin, Ogbomoso–Iseyin, and Ibadan–Eruwa roads have significantly reduced travel time, opened access to rural communities, and boosted intra-state commerce.
“The completion of these roads is not just about asphalt,” Oyelade said.
“It is about connecting people, products, and possibilities. By linking agrarian communities to urban markets, we have expanded trade, enhanced logistics, and created a circular economy that benefits both rural and urban dwellers.”
Additionally, the state government has injected about ₦14.5 billion monthly into the local economy through salaries and wages to more than 130,000 civil servants, amounting to nearly ₦180 billion annually.
This steady flow of liquidity among the low- and middle-income earners sustains consumer demand and stabilises the informal economy.
Recognition of Oyo as a Model for Subnational Economic Governance
For the third consecutive year, Oyo State has been recognised by various professional bodies and government agencies — including the National Bureau of Statistics (NBS) and PEBEC — as one of the leading investment destinations in Nigeria.
The recognition, analysts say, stems from Governor Makinde’s ability to combine fiscal prudence with economic inclusivity.
His administration’s approach of “spend smartly, build sustainably, and govern transparently” has made Oyo a case study in effective state-level development.
According to Oyelade, the latest PEBEC ranking is a national validation that “intentional leadership produces measurable results.”
He added that the Makinde administration’s focus on accountability, innovation, and human capital development has ensured that the benefits of growth are felt across sectors.
“Every project, from our roads to our educational reforms, is tied to economic value,” he said.
“Our administration’s transparency and consistency have given investors the confidence to expand their footprint in Oyo.”
Oyo’s Economic Outlook for 2026
With the state’s economy now one of the most diversified in southern Nigeria, experts forecast even greater growth in 2026.
The Makinde administration plans to consolidate its achievements through new investments in industrial estates, agricultural value chains, and renewable energy.
The state’s strategic location and its improving infrastructure have made it a preferred destination for logistics, manufacturing, and agritech investors.
Furthermore, Oyo’s youthful workforce and ongoing digital transformation agenda are set to make it a regional innovation hub in the coming years.
As the year 2025 winds down, Oyo’s inclusion in PEBEC’s top-three ranking is not just a feather in the governor’s cap but also a signal that subnational governance in Nigeria can work when leadership is data-driven and development-oriented.
The Oyo State Ease of Doing Business ranking reflects a story of steady progress built on deliberate governance choices, fiscal innovation, and inclusivity.
Governor Seyi Makinde’s administration has successfully redefined how subnational governments can attract investment without overburdening citizens with taxes.
By prioritising infrastructure, human capital, and business reforms, Oyo has proven that economic prosperity at the state level is achievable through clear vision and execution.
With a projected ₦100 billion IGR target and growing investor confidence, Oyo is well-positioned to remain a national model for ease of doing business and sustainable development in 2026 and beyond.
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