-The Finance Minister Outlines Sweeping Reforms in Revenue, Infrastructure, and Civil Service Pay While Celebrating Liberia’s Return to MCC Eligibility
MONROVIA, Liberia — Finance and Development Planning Minister Augustine Kpehe Ngafuan says the Draft National Budget for Fiscal Year 2026 represents a decisive step toward stabilizing Liberia’s economy, reforming public sector compensation, and advancing President Joseph Nyuma Boakai’s ARREST Agenda.
Speaking Thursday, November 13, 2025, during a special interview on the state broadcaster ELBC, Minister Ngafuan explained the administration’s spending priorities, the structure of the US$1.211 billion draft budget, and the significance of Liberia’s recent performance on the Millennium Challenge Corporation (MCC) Scorecard.
‘This Is a Serious Budget for a Serious Time’
Ngafuan described the FY2026 Draft Budget as “a serious budget for a serious time,” aligning resources toward areas that will directly influence economic transformation.
“This budget is built to restore credibility in fiscal governance and reposition Liberia on a sustainable path,” he said. “The focus is on roads, agriculture, health, security, energy, sanitation, and education — the pillars of the ARREST Agenda.”
He emphasized that 94% of the budget—about US$1.13 billion—will be funded through domestic revenue, reflecting improved tax performance and renewed confidence in government systems.
ArcelorMittal’s US$200 Million Sign-On Bonus: A Major Boost
Minister Ngafuan clarified one of the most discussed components of the draft budget — the US$200 million ArcelorMittal’s sign-on bonus.
“This is not money we are gambling on,” he stressed. “This is a real, validated revenue stream coming from a fully negotiated, fully enforceable agreement with ArcelorMittal. The government will ensure the money comes in as projected.”
Salary Reform Will Begin in 2026
The Minister confirmed that long-awaited public sector salary reform will begin next year.
“We have salary disparities that are simply unfair,” he explained. “You cannot have someone with the same qualification earning US$800 in one ministry and US$300 in another. This budget begins to correct that.”
Ngafuan disclosed that the government will introduce a unified pay structure to eliminate inequities across ministries and agencies.
Liberia Passes MCC Scorecard: ‘A National Achievement’
Speaking on Liberia’s successful performance on the MCC Scorecard announced earlier in the day, Ngafuan said the achievement is “a national victory, not a government victory.”
“Passing the MCC Scorecard is proof that Liberia is doing something right,” he said. “This puts us back on the pathway toward a possible second compact — and that compact could mean hundreds of millions of dollars for infrastructure and energy.”
He credited President Boakai’s leadership and renewed commitment to governance reforms.
“The President made tough decisions on transparency, fiscal discipline, and rule of law. The results are showing already,” he noted.
More Roads, Energy, and Agriculture Investments Expected
According to Ngafuan, the Public Sector Investment Plan (PSIP) will receive approximately US$280 million — the largest in recent years.
“If we want to reduce food prices, we must connect agricultural communities to markets. That means roads, storage facilities, and energy. This budget reflects that reality,” he said.
Liberia’s Economic Outlook Improving
The Minister told the nation that macroeconomic indicators are beginning to stabilize, citing lower inflation, better exchange rate management, and enhanced domestic revenue mobilization.
“These are early signs, but they show that the Liberian economy is responding positively to the administration’s policies,” he added.
Call for Legislative Cooperation
Ngafuan urged the National Legislature to scrutinize the draft budget thoroughly but speedily.
“The President has done his part,” he said. “We ask our lawmakers to review the document with urgency and patriotism so that implementation can begin early.” He announced that the Ministry of Finance and Development Planning will hold further technical briefings to provide lawmakers, media, and civil society with detailed analysis of the budget.
