Enugu’s Fiscal Revolution: Why BudgIT Ranked Mbah’s State Most Likely To Survive Without FAAC

Through strategic revenue reforms, disciplined spending, and a historic $39.8 million debt reduction, Governor Peter Mbah has positioned Enugu as Nigeria’s most fiscally resilient state — capable of thriving without monthly federal allocations, writes Nseobong Okon-Ekong

In an unprecedented recognition of fiscal prudence and innovation in governance, civic-tech group BudgIT has adjudged Enugu State, under Governor Peter Mbah, as the most likely Nigerian state to survive without monthly allocations from the Federation Account Allocation Committee (FAAC).

The report, contained in BudgIT’s 2025 State of States publication, placed Enugu ahead of all other sub-national governments in the country for its strong internally generated revenue (IGR), prudent expenditure management, and an impressive record in debt reduction.

According to data released by the Debt Management Office (DMO) and analysed by StatisSense, Enugu State leads the 17 newly elected governors’ states in cutting down foreign debt — trimming it by a remarkable $39.8 million within one year.

This feat stands out at a time when many states are still increasing their external borrowing to finance recurrent expenditures. Mbah’s approach has been to curb unnecessary loans, strengthen fiscal transparency, and redirect savings into productive areas of the economy.

Reducing external debt eases repayment pressure, lowers long-term servicing costs, and boosts investor confidence — sending a strong signal that Enugu is committed to fiscal sustainability and not trapped in dependency.

IGR Growth: A Model of Internal Revenue Reform

BudgIT attributes Enugu’s ranking largely to its exceptional growth in internally generated revenue (IGR). When Mbah took office in May 2023, Enugu’s IGR stood at about N30 billion. By the end of 2023, it had risen to N37 billion, and by 2024, the figure had soared to N180 billion.

This leap was driven by comprehensive tax and revenue reforms. The Mbah administration introduced digital payment systems to plug leakages, expanded the tax net, and strengthened compliance across sectors.

BudgIT’s Index A — measuring a state’s ability to meet recurrent expenditure from IGR — placed Enugu’s score at 0.68, meaning the state can now fund 68 percent of its operations from its internal earnings alone.

That figure is far above the national average, where most states cover only 30–40 percent of their costs without FAAC inflows.

Smart Spending and Economic Vision

Governor Mbah’s fiscal revolution goes beyond revenue collection. His administration has demonstrated expenditure discipline, prioritising capital projects and infrastructure investment over routine administrative costs.

Enugu’s 2024 and 2025 budgets reflect a strategic shift toward productive spending, especially in energy, transportation, agriculture, and technology.

At the heart of this transformation is Mbah’s long-term vision to expand Enugu’s GDP from $4.4 billion to $30 billion within eight years, anchored on private sector participation, innovation, and transparent governance.

This strategic reorientation is positioning Enugu as an emerging investment hub and a model of sub-national economic transformation.

A New Model for Fiscal Autonomy

BudgIT’s verdict is more than symbolic. It sends a powerful message to investors and development partners that Enugu is fiscally stable, well-managed, and capable of withstanding financial shocks — even if federal allocations were to dwindle.

With this trajectory, Enugu can continue paying salaries, funding infrastructure, and executing key projects without waiting for monthly FAAC bailouts. It offers a replicable model for other states, proving that transparency, innovation, and discipline can build a strong, independent economy.

Context and Challenges

While Enugu’s progress is remarkable, full fiscal independence remains a work in progress. Covering 68 percent of recurrent expenses from IGR is an impressive start, but there is still ground to cover.

Sustaining these gains will require institutionalising reforms and shielding them from future policy reversals. Economic shocks such as inflation or exchange rate fluctuations could also affect the fiscal balance.

Nevertheless, the Mbah administration has laid a durable foundation for long-term stability and self-reliance — a bold departure from the culture of dependency that has long plagued Nigeria’s states.

In a federation where most states survive on monthly federal allocations, Enugu under Governor Peter Mbah has become a shining example of fiscal independence and innovation.

By cutting external debt by $39.8 million, boosting IGR to N180 billion, and enforcing a regime of disciplined spending, Mbah has proven that a Nigerian state can indeed chart its own economic destiny.

BudgIT’s ranking is not merely an accolade — it is an endorsement of visionary leadership and a wake-up call to other governors: sustainable prosperity is possible when governance is anchored on data, discipline, and strategic planning.

​  

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    Tinubu to Editors: Criticise Govt Policies But Don’t Compromise National Unity

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    Deji Elumoye in Abuja

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    He said, “Debate is part of our reality, but disagreement must never translate into weakening national unity. The national interest must be paramount.”

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    He stated, “When I assumed office and removed the arbitrage to stop corruption and strengthen the economy, you all dealt with me. But today, we should celebrate that progress is being made. The days of darkness are ending; the economy is on the path to improvement.”

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    He said, “Journalism in Nigeria has been more than a profession, it has been an instrument of national awakening. Their sacrifices form part of the foundation upon which our democracy rests.”

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    “We are challenged by terrorism and banditry, but our forces are inspired. They put their lives on the line to defend our sovereignty,” he stated.

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    Uzodimma urged Nigerian editors to take greater responsibility for protecting electoral integrity and restoring public confidence ahead of the 2027 general elections.

    He stated, “If you have a role in democratic governance and national cohesion, you must also assume responsibility for electoral integrity. Without electoral integrity, there can be no democracy.”

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    “Let 2027 be the year the Nigerian media becomes the architect of a shared democratic future,” he stressed.

    The governor lauded Tinubu’s presence at the conference, describing it as a testament to the media’s strategic role in national development.

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    “The fourth estate has remained constant. Let it continue to stand strong in defence of the people.”

    In his intervention, Chairman of THISDAY/ ARISE Media Group and Co-chair of the 21st All Nigeria Editors Conference, Nduka Obaigbena, warned that Nigeria risked losing its voice in the global media space due to artificial intelligence and foreign control of digital content.

    According to the immediate past President of Newspaper Proprietors Association of Nigeria (NPAN), “Thirty years ago, on 10th of November 1995, we, editors and publishers, were invited to this presidential Villa by the then head of state, General Sani Abacha. As we sat in one of the conference rooms of the FEC, the soldiers spoke to us and said to us, Ken Saro-Wiwa was executed. That was 30 years ago under military dictatorship.

    “So, 30 years later, we are here celebrating engagement with the president of the Federal Republic of Nigeria. So I thought we must understand why democracy matters, why we must engage, why we must sustain democracy for the greater good of the Federal Republic of Nigeria.”

    Obaigbena also used the opportunity to call for the protection of current economic stability and the gains of reforms to put the country in better stead.

    Earlier, in his welcome address, President of NGE, Eze Anaba, raised concerns about the worsening financial state of the Nigerian media, warning that many media organisations are on the brink of collapse due to soaring operational costs.

    Anaba stated that the price of a ton of newsprint, lasting only a few days, had risen to between N1.3 million and N1.4 million, a trend that had left newsrooms overwhelmed by rising production expenses.

    “The media today is distressed. Many organisations simply cannot pay salaries, not because they are incompetent, but because the cost of production has become prohibitive,” he said.

    Anaba said the inability of media houses to retain journalists threatened democratic accountability.

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    To save the industry, the Guild president proposed 5-10-year corporate tax relief for media companies; VAT exemptions on essential inputs; tax credits for corporations advertising in verified Nigerian outlets; and low-interest loan windows through the Bank of Industry and Development Bank of Nigeria to support equipment upgrades and digital migration.

    He also called for a Media Innovation Fund to support online platforms, data journalism, and multimedia storytelling.

    Anaba stressed that the proposed interventions were not acts of patronage, but safeguards for democracy.

    He said, “When the press thrives, democracy breathes. When the press is stifled, democracy suffocates.”

    He urged the federal government to act swiftly.

    The two-day conference, which continues today at the NAF Conference Centre, Abuja, features panel discussions on law, politics, and the economy.

    ANEC2025, which brought together more than 400 editors across the country’s media space, including print, broadcast and new media, was graced by top government functionaries, among whom were Kogi State Governor Ahmed Ododo, members of the Federal Executive Council (FEC), and officials from various states.

    Co-chaired by Sultan of Sokoto, Alhaji Muhammad Saad Abubakar III and  Obaigbena, the event had former Ogun State Governor, Aremo Segun Osoba; and former Chairman of Niger Delta Development Commission (NDDC), Chief Onyema Ugochukwu, among the lead participants.

    On Thursday, discussions will shift to national security and the evolution of the newsroom, with Gen. Lucky Irabor (rtd.) doing a presentation on “Media, Terrorism, and National Security,” and Professor Abiodun Adeniyi of Baze University addressing, “The Evolving Face of Journalism: Battling Misinformation, AI Disruption, and the Credibility Gap.”

    The event will close with a gala night featuring the induction of new members and the elevation of new Fellows of the Guild, including Dr. Amanze Obi, Casmir Igbokwe, Arinze Azuh, Ephraims Tokan Sheyin, Dr. Sulaiman Sule, and Ken Njoku.

    ​  

    •Identifies irresponsible reporting, misinformation as antidotes to democratic stability  •Uzodimma, Idris task editors to safeguard elections, rebuild public trust ahead of 2027 poll  •Warn media against narratives that promote distrust,

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