Lookman scored the winner on debut for his loan club against Borussia Monchengladbach on the weekend.
“I don't need to watch him because of the load we have," Allardyce told the Liverpool Echo.
“He will be monitored by our scouting system because we have a scout out in Germany anyway, who lives there.
“He will be the first to start monitoring him and then Steve and the gang will trip out every now and again to see what his performances are like."
Allardyce added: “I would've preferred him to go to a Championship club that came in for him, that are riding high in the Championship but if you look at Leipzig, they are riding high in the Bundesliga so let's hope it's a success all around.
“Because if he can play that level on a consistent basis then he will certainly be heading up a big challenge for Everton's first-team at the start of next season."