The Kaduna State Business Directory provides a clear look at Northern Nigeria’s former industrial capital. Over the past two decades, the city’s textile industry declined sharply while security challenges increased across the region. In 2026, however, Kaduna is being rebuilt and repositioned. The state now records the highest internally generated revenue in the North, supported by steady reforms and infrastructure development.
This Kaduna State Business Directory offers a practical guide to the local business environment. It covers key sectors, business districts, investment sites, current opportunities, and the challenges that companies and entrepreneurs need to understand before setting up in Kaduna.
An Overview of Kaduna’s Economic Landscape
With a population of roughly 1.25 million people, Kaduna City is one of Northern Nigeria’s largest urban centers. The state as a whole has between 8 and 9 million people, depending on the source. Founded as a British administrative center in 1913, with its capital status secured in 1954, Kaduna was the industrial center of Nigeria in the late 1950s and 1960s.
The state was known as Nigeria’s Textile City, full of textile mills that fuelled the city’s early growth. The 21st century saw a steep decline in both the number of textile mills and their productivity. In 2022, United Nigeria Textiles Limited, one of the oldest textile companies in Kaduna, was permanently shut down. More than ten textile companies have closed in the last decade, driven by a combination of inconsistent electricity supply and demand. The state government has acknowledged the loss of the textile industry in spades, as its reform agenda clearly states.
On the other hand, Kaduna is one of the best-performing states in the country when it comes to fiscal responsibility and reform. Under the current administration, internally generated revenue (IGR) has grown from ₦62.48 billion in 2023 to ₦71 billion in 2024 and further to ₦86 billion in 2025 (All Africa), with the state revenue service projecting close to ₦90 billion by the end of 2026 (Business Day).
According to the Phillips Consulting State Performance Index 2025, Kaduna is the third-best state in Nigeria in terms of fiscal, security, infrastructural, and governance performance, having received an Excellent Four-Star rating from independent analysts of the state’s reform action plan. However, while the Kaduna State government has exemplary fiscal diligence, which has improved the business environment, consider the security situation in the state before investing. Kaduna has improved substantially in terms of security, but it is still not the safest place to do business.
Officially, the state’s government has significantly invested in improving its security profile, resulting in claims that Kaduna has become one of the safest places to do business in Nigeria. This is not just hot air, as the UK Foreign Office changed Kaduna’s status from Red to Amber in September 2025 (Vanguard). Besides the Kaduna Peace Model that reduced communal tension in Southern Kaduna, there are reasons to believe that the investment will affect the state’s overall security. However, not all of them are entirely accurate, as displacement numbers in Southern Kaduna are still inconsistent with various reports.
Furthermore, the much-needed Kaduna-Abuja Highway, which connects the state to the federal capital, is being rehabilitated and should be able to generate considerable commercial activity shortly.
Nonetheless, the US State Department continues to advise against traveling to Kaduna due to its Level 4 (Travel Advisory). There was an attack that left at least 30 people dead in Naridon, Kauru Local Government Area, on July 27, 2026 (PM News). Attacks in Kaduna occur mainly in rural areas, particularly in Birnin Gwari, and to a lesser extent, Southern Kaduna.
Kaduna is home to many unregistered traders, most in the informal sector. Even though Kaduna State authorities have taken steps to formalize many informal business owners, exercising caution when making any commitments in the informal business sector is essential.
In addition to security and the state’s fiscal discipline, Kaduna has implemented a pro-investment agenda, including road infrastructure, tax incentives, and investment promotion that has been prioritized in the 2026 budget.
Key Sectors Driving Growth
Agribusiness and food processing
Due to the abundance of natural resources in the state, agribusiness is a major area of focus for Kaduna. Cotton is at the heart of it, as textile production is crucial to Kaduna’s economic revitalization. Special Agro-Processing Zones are being planned, where cotton production for the textile industry will be increased, as well as other agricultural products. Agricultural development will require a concerted effort to step up food and fiber production, particularly cotton, to meet the needs of the textile industry. There are already promising developments in private investment in farmland for local textile production. The state of the sector can be seen as an emerging opportunity for investment, rather than a saturated one.
Manufacturing
As mentioned above, Kaduna was once the industrial center of Nigeria, so it is no surprise that manufacturing is a key pillar of Kaduna’s economy. Kakuri, the industrial belt, is at the heart of Kaduna’s proposed industrial revolution. The city has, in its master plan for revival by 2026, a total overhaul of Kakuri into a textile manufacturing hub, as the region’s textile industry is set to take off under the federal government’s textile development program. Apart from its proximity to the proposed Ajaokuta-Kaduna-Kano gas pipeline, the future is bright for this industrial city. For now, let’s enjoy the talk around the project.
Technology and Digital Services
Technology and digital services in Kaduna are dominated by Kaduna-based innovation ecosystems, which include CoLab, Kaduna ICT Hub, and Kaduna Quantum Innovation Hub. Founded in 2016 by Sanusi Ismaila, CoLab has had alumni at Microsoft, Goldman Sachs, Cloudflare, Andela, the pan-African talent platform, and fintech start-ups such as Payant. Payant is a leading fintech that enables youths to tap into their potential and make a meaningful impact in their respective fields, providing a wide range of opportunities. Additionally, established in partnership with the Kaduna State Government and a private technology partner, Kaduna ICT Hub provides training led by Coders4Africa.
In turn, Kaduna Quantum Innovation Hub helps Kaduna’s young entrepreneurs shape their careers. While Kaduna may not be the place to go if one is looking for a mature tech scene, there are still opportunities for the right kinds of investment.
Education and Healthcare. Ahmadu Bello University in Zaria is one of the largest universities in sub-Saharan Africa, and Kaduna itself has colleges and hospitals. This is an excellent opportunity for organizations looking to hire local technical and professional expertise.
Financial Services and Trade. As Kaduna has been the commercial and administrative hub of Northern Nigeria for much of its history, it has a rich banking sector. In addition, Kaduna has one of the most developed trading ecosystems in the country, which makes it a great place for both formal and informal investment.
The Business Districts and Key Areas
Kaduna Central Business District
The heart of business, finance, and government in Kaduna. This area is where the city’s formal business sector is concentrated, as well as the financial institutions.
Kawo and Rigasa
Two major districts to the north and west of the central business district, respectively, which are seeing significant development. With the Kaduna-Abuja Railway Station based in Rigasa, many small businesses have opened in this previously informal district.
Kakuri Industrial Layout
The industrial area is the epicenter of Kaduna’s proposed textile manufacturing renaissance. The area has undergone significant development and is home to many of the state’s textile manufacturing facilities, several of which have since been shut down due to a lack of electricity.
Malali and GRA
This district is home to corporate offices and has a high concentration of older businesses that have been operating in Kaduna for a considerable period of time.
Mando and Barnawa
To the north and south of the city’s central business district, respectively, are the areas of Mando and Barnawa, which are growing rapidly in the retail, leisure, and hospitality sectors. In particular, Barnawa has seen the development of its GRA district, as well as a shopping mall within the older part of the district, attracting many businesses.
Investment and Development Activity
Infrastructure development has been a key pillar of Kaduna’s reforms. The Abuja-Kaduna Highway, re-awarded in 2025 for ₦777 billion, is one such project expected to have a major impact on trade in the years to come. The Kaduna-Kano railway is another such project. As of mid-2026, work on the Kaduna-Zaria-Kano section was 80 to 85 percent complete, with commissioning scheduled for December 2026 as part of the larger Kano-Maradi railroad project connecting Nigeria and Niger.
A less-publicized but equally important development is the state’s ability to fund its own capital projects through the Kaduna State’s PAYKADUNA digital tax platform. The increase in IGR, as mentioned above, has made the state more attractive to potential investors.
Kaduna has yet to develop a venture scene of its own, with most VC and PE attention currently focused on Lagos and Abuja. This is not unique to Kaduna, as it reflects a broader trend among Nigeria’s secondary cities, and Venture Stori hopes to change that by highlighting some of the people, projects, and potential that can be found in Kaduna.
Who Is Building Here: Key Players and Innovators
Sanusi Ismaila, CoLab. The founder of Kaduna’s first innovation hub, which opened its doors in 2016 in Barnawa. This crowdfunded co-working space has since provided the local small tech scene with its most prominent successes, including fintech startup Payant, a graduate of the CoLab incubator, which provides financial services and products to individuals and businesses.
Payant. A fintech company offering financial services and products to individuals and businesses. One of the most successful companies to emerge from the CoLab innovation hub, Payant is an excellent example of a Kaduna-based fintech company that has launched and gained traction with customers and partners outside the region.
Kaduna ICT Hub, Coders4Africa. The government-sponsored rival talent development platform to CoLab provides training in web and mobile development, hardware, and emerging technologies, with delivery by Coders4Africa.
The Kakuri textile revival coalition. While not an individual, this coalition drives much of the investment in the revival of the region’s textile industry, with Kakuri at its center.
There are opportunities for private investment in infrastructure and local manufacturing, as well as for individuals looking to take advantage of the area’s special opportunities.