Oyo State has been ranked the third most friendly state for business in Nigeria, according to the 2025 Subnational Ease of Doing Business Report released by the Presidential Enabling Business Environment Council (PEBEC). Following the rating, the Chairman of the Oyo State Internal Revenue Service (OYIRS), Mr. Femi Awakan, has urged investors to make the state their preferred investment destination.
The PEBEC report, which assessed state performance under the Business Facilitation Act (BFA) framework from January to October 2025, highlighted reform-driven governance, administrative efficiency and investor-support systems across Nigeria. Lagos topped the chart with 85.6 per cent, Kaduna followed with 65.1 per cent, while Oyo placed third with 62.7 per cent, earning recognition as second in the South-West region after Lagos.
Reacting to the development, Awakan attributed the state’s impressive ranking to its consistently tax-friendly climate and the investor-oriented policies of the Governor Seyi Makinde-led administration.
He noted that for six years, Oyo State has maintained stable tax rates without introducing new levies, a strategy he said has strengthened voluntary compliance among citizens and businesses. According to him, the government’s open-door approach, reinforced by special-purpose structures that function as one-stop shops, has further enhanced transparency and ease of engagement for investors.
“The government of Oyo State has demonstrated the belief that every citizen should voluntarily comply with their tax payments rather than forcing them to comply,” he said.
Awakan explained that policies targeted at ease of doing business have contributed significantly to the steady rise in the state’s internally generated revenue. He added that investments in strategic enablers, such as improved road networks, intercity connectivity, enhanced security and direct support for business growth, have positioned Oyo as one of the most attractive destinations for investors in Nigeria.
“When you place this side by side with the governor’s commitment to putting in place strategic enablers such as good road networks, interconnectivity, adequate security and the readiness to help businesses grow and thrive, then a clearer picture of the state being the best place for investments will emerge,” he stated.
Describing the PEBEC ranking as a “green flag” for prospective investors, he emphasised Oyo State’s conducive environment, availability of labour, security and visionary leadership.
“I encourage investors to come into Oyo State, invest in Oyo State and succeed in Oyo State, where the leader is visionary and insightful and the system is effective and well-suited to bring Return on Investments within a limited time,” Awakan said.
