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From Federal Dependence To Fiscal Powerhouse
When Peter Ndubuisi Mbah assumed office as Governor of Enugu State on May 29, 2023, many residents regarded another four-year tenure with skepticism. Enugu, like many sub-national units in Nigeria, had long relied heavily on Federal allocations, with Internally Generated Revenue often too paltry to fund development ambitions.
Citizens had grown accustomed to the constraints of budgetary limitations, poor infrastructure, and public services that were often inconsistent or underfunded.
Within just twenty-four months, Mbah’s administration achieved what many thought impossible. Enugu emerged as Nigeria’s most fiscally self-sufficient state, transforming its economy, infrastructure, social services, and overall governance. The transformation was comprehensive, touching virtually every aspect of life in the state, and it was guided by a combination of vision, strategic planning, discipline, and technological innovation.
When Mbah took office, Enugu’s Internally Generated Revenue stood at roughly thirty billion naira. By the end of 2023, that figure had risen modestly to around thirty-seven billion naira. The real breakthrough came in 2024, when IGR skyrocketed to about one hundred and forty-four point seven billion naira by September, and according to state government projections, it would surpass two hundred billion naira by the end of the year. This dramatic increase was not a stroke of luck or coincidence. It was the result of deliberate, systemic reforms aimed at modernizing revenue collection, formalizing informal businesses, and ensuring that all sectors of the economy contributed fairly to state development.
A recent comprehensive review by BudgIT ranked Enugu as Nigeria’s most financially independent state. The report noted that in 2025, Enugu generated one hundred and forty-six point six-eight percent of its recurrent expenditure from internal revenues, surpassing even the legendary fiscal self-reliance of long-established states.
Professor Chris Mustapha Nwaokobia Junior of the COUNTRYFIRST Movement commented, “Through innovation, technology, fiscal discipline, and bold reforms, Governor Mbah is transforming Enugu from a predominantly civil service economy into a productive, technology-driven hub of inclusive growth.” Experts like Nwaokobia say that if the current trajectory continues, Enugu’s economy, which is currently estimated at 4.4 billion U.S. dollars, could reach over 10 billion dollars by 2027, powered by local industries, technology investments, agriculture, and commerce.
Mbah’s administration embarked on multiple initiatives to achieve this financial leap. Taxes and revenue collection were digitized, ensuring transparency and efficiency. Small and informal businesses that previously operated outside the tax net were formalized, widening the revenue base significantly. Systemic leakages that had historically plagued state finances were addressed through both technological monitoring and strict administrative oversight. By creating a system that was transparent, accountable, and technologically driven, the government ensured that revenue would no longer be a limiting factor in state development. As a result, Enugu transitioned from a state scrambling for federal allocations to one capable of funding its own capital and recurrent expenditures and planning ambitious growth programs across multiple sectors.
The new financial muscle allowed the Mbah administration to reconfigure the state budget in ways that few thought possible under Nigeria’s strained economy. For 2024, the government presented a budget of five hundred and twenty-one point five billion naira, which was over one hundred and thirty percent bigger than the revised 2023 budget. In late 2024, Mbah submitted a record-breaking 2025 budget of nine hundred and seventy-one billion naira, of which eight hundred and thirty-seven point nine billion naira, representing eighty-six percent, was earmarked for capital expenditure. This shift demonstrated a commitment to growth-oriented projects rather than mere recurrent spending, reflecting a long-term vision for the state.
Crucially, education received over one-third of the budget. Approximately three hundred and twenty point six billion naira was allocated to build a network of 260 Smart Green Schools, one in each ward. These schools are not ordinary classrooms but centers of innovation, equipped with digital whiteboards, robotics laboratories, solar power, internet access, and science or mechatronics labs. Speaking on the initiative, Mrs. Uchenna Nwafor, a parent and community leader in Enugu East, said, “I have never seen anything like it. Our children will have access to technology and science in ways that were impossible before. This is the kind of change that can transform generations.” The investment in education signals a forward-looking strategy to prepare the youth for a technology-driven and competitive future.
Health and Social infrastructure were also prioritized. The administration committed to building 260 primary healthcare centers across the state’s wards, each equipped with staff quarters, clean water, solar panels, and basic medical equipment. Dr. Chika Onwudiwe, a medical officer in Nsukka, said, “For years we struggled with inadequate facilities and equipment. Now, our clinics are properly staffed and supplied, and patients receive quality care close to home. This is revolutionary for public health in Enugu.” On the infrastructure front, over 800 kilometers of roads were constructed, opening access to farms, markets, schools, and hospitals. This massive road expansion facilitated commerce, reduced travel time, and connected previously isolated communities. Long-dormant water schemes, including the 9th Mile and Oji River Water Schemes, were revived, increasing daily water production from roughly two million liters to over 120 million liters. Residents who had long depended on tankers and boreholes now have access to a reliable supply of clean water, a development that has transformed daily life and health outcomes.
Financial autonomy also allowed the state to reduce dependence on borrowing to fund large-scale projects. By relying on internally generated revenue, the administration demonstrated that strategic governance and efficient resource mobilization could overcome the chronic fiscal challenges that have historically plagued sub-national governments in Nigeria. Citizens, who had previously endured inconsistent service delivery and infrastructural decay, began to witness tangible changes in their communities, which enhanced public trust and optimism in government.
The transformation extended beyond revenue and infrastructure. Technology and Governance reforms were central to Mbah’s vision. The state government integrated all 111 Ministries, Departments, and Agencies onto a single e-governance platform, digitizing financial transactions and making them publicly traceable. Real-time tracking of revenue and expenditure ensured transparency, reduced opportunities for corruption, and facilitated accountability. In the land sector, the Enugu Geographic Information Service digitized more than 80 percent of land titles, reducing approval times from months to days. This reform eliminated bureaucratic bottlenecks that previously discouraged investment and fostered corruption, while also making land acquisition more efficient for businesses and private citizens alike.
To stimulate Agriculture and agro-industrial investment, the administration earmarked 300,000 hectares of land for commercial farming and created 200-hectare estates in each ward. Several thousands of hectares have already been leased to investors, signaling robust private sector interest and creating opportunities for job creation, food production, and rural development. By linking fiscal reforms, digital governance, land accessibility, infrastructure, and social services, the Mbah administration redefined the ease of doing business in Enugu. Investors, both local and foreign, are reportedly returning, and rural-to-urban migration is slowing as people find viable economic opportunities in their home communities.
Social stability and quality of life improved significantly under Mbah. Recognizing that insecurity and poor infrastructure had long stifled commerce, mobility, and citizen confidence, the administration constructed five modern transport terminals, including Holy Ghost Terminals 1 and 2, Gariki, Abakpa, and Nsukka, to facilitate smoother movement across the state. Security was enhanced through the establishment of a state command center and the deployment of AI-enabled security patrol vehicles, which helped to curb violent crime and restore public confidence. Citizens report that life and travel in the state, even along areas once considered dangerous, are now far safer. Rural communities, long neglected and disconnected, experienced better access to roads, schools, health clinics, and clean water, reducing the need for residents to migrate to urban centers in search of basic services. The overall improvement in quality of life has created a sense of optimism and renewed community engagement across the state.
By Benprince Ezeh
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