By: Julius Konton
Liberia’s Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, says the country’s historic US$1.2 billion national budget will dramatically improve revenue collection through expanded digitization, tighter audits, and strengthened border operations.
Speaking during a day-long media engagement in Monrovia, Minister Ngafuan said the government is “investing heavily in modern revenue systems,” particularly within the Liberia Revenue Authority (LRA), which he described as “one of the biggest beneficiaries” of the new fiscal framework.
“We are giving more money in order to get more money,” he emphasized.
According to him, the rollout of Electronic Fiscal Devices (EFDs) across businesses will curb tax evasion and ensure compliance, while digital upgrades will seal longstanding revenue leakages at ports and border crossings.
He confirmed that the LRA will hire additional personnel and intensify tax audits nationwide.
“As we do this, revenue will rise and efficiency will increase,” he assured.
A key highlight in the FY2025 budget is the government’s aggressive stance on debt repayment.
Minister Ngafuan said Liberia’s debt-servicing allocation has jumped from US$155 million to US$230 million, describing it as a necessary step to restore macroeconomic credibility.
“If we owe as a country, we have to pay. The first claim on revenue under the Public Financial Management Law is debt service.”
Although the budget allocates $230 million, Liberia’s total debt-servicing obligation is closer to US$300 million, he disclosed.
The minister revealed that the government owes commercial banks as such allocated US$90 million for repayment.
“If we don’t pay the commercial banks, they will be short of money, businesses won’t get loans, and we will be the cause of instability,” Ngafuan warned.
“We can’t be the defaulter-in-chief. It sends a bad signal to the economy.”
He added that the government also owes the Central Bank of Liberia (CBL) US$83 million, borrowed in 2023 to pay civil servants.
The 2025 budget allocates US$16 million toward that repayment, with another US$16 million scheduled for next year.
Additionally, US$14 million has been set aside to repay the Africa SMB loan used to finance the ELWA–RIA corridor.
While USAID and EU financing come as grants, Minister Ngafuan noted that support from the World Bank and African Development Bank (AfDB) must be repaid, though on concessional terms.
The new budget includes:
US$25 million — World Bank debt repayment
US$5 million — African Development Bank repayment
US$3 million+ — repayment to the Saudi Fund
US$1 million+ — repayment to the Kuwaiti Fund for the Gbarnga–Menekoma road
DEBT VS SOCIAL SERVICES: A GROWING BALANCING ACT
Ngafuan acknowledged that debt obligations are beginning to rival major social sectors:
Health: US$101 million
Education: US$132 million
Debt Service: US$230 million
He warned that access to financing remains “one of the biggest constraints to economic growth,” with Liberia’s total debt stock now around US$2.7 billion and climbing.
The ongoing General Auditing Commission (GAC) review is expected to add US$95 million more to the official debt figures.
“Domestic debt has been above a billion for a long time. For the first time, the budget is seriously chasing domestic debt,” he noted.
“We want to compete with domestic debt so we can raise money and pay what we owe.”
Minister Ngafuan concluded that debt servicing remains one of the largest components of the national budget, and the administration is committed to responsibly managing the country’s finances.
“It is pivotal that we pay our debts. It is central to maintaining stability and attracting new financing.”
