MONROVIA – President Joseph Nyuma Boakai has declared that Liberia’s recent surge in domestic revenue is proof that the country can reduce its dependence on foreign aid and build a more resilient economy through discipline, reform, and accountability.
The President described the sharp cut in external funding last year as a “wake-up call,” warning that overreliance on donors exposes Liberia to economic shocks and even national security risks. He said the experience forced his Administration to confront long-standing weaknesses in revenue mobilization.
“In my Annual Message last year, I pledged to strengthen domestic revenue by aligning reforms with regional benchmarks, improving tax compliance, and investing in digital systems,” President Boakai said, pointing specifically to the modernization of customs operations at the Freeport of Monrovia.
According to the President, those commitments are now yielding tangible results. Liberia’s ability to collect and manage its own resources, he said, is steadily improving as a result of stronger policies and better enforcement.
For Fiscal Year 2025, the Government approved a national budget of US$880.5 million, largely funded by domestic revenue amounting to US$804.6 million. By the end of the year, total revenue reached US$885.8 million, exceeding projections by US$5.1 million.
Domestic revenue alone climbed to US$847.7 million, surpassing the target by US$43.1 million and marking the highest domestic revenue figure ever recorded in Liberia’s history. President Boakai noted that this represented an increase of US$148 million over 2024, the largest single-year gain the country has ever achieved.
“Liberia can finance more of its own development if we put the right policies in place and collect what is due,” the President said, emphasizing that the figures demonstrate what is possible when compliance improves and leakages are reduced.
Over the past two years, domestic revenue has risen by US$235.7 million, a performance the President attributed to improved administration, digitalization, and stronger oversight. He publicly commended the Liberia Revenue Authority and partner institutions for what he called their professionalism.
President Boakai also disclosed that the improved revenue performance has created fiscal space for an unprecedented move. “On account of the robust revenue performance for 2025, the fiscal authorities are concluding processes that will lead to the submission of a supplemental budget to the Legislature next month, the first in many years,” he announced.
On the expenditure side, the President reported that as of the end of November 2025, total government spending stood at US$709.7 million, covering both recurrent and capital expenditures. A significant portion of capital spending, he said, was directed toward road infrastructure.
Turning to public debt, President Boakai revealed that Liberia’s total debt stock stood at US$2.8 billion as of the end of December 2025. Domestic debt accounted for US$1.2 billion, mainly owed to the Central Bank of Liberia and commercial banks.
External debt, largely owed to multilateral partners such as the World Bank and the African Development Bank, stood at US$1.6 billion. Despite these obligations, the President said the Government remained largely current on its debt service.
In 2025 alone, Liberia paid US$120.1 million in debt service to both domestic and external creditors. President Boakai assured lawmakers that his Administration remains committed to prudent debt management and fiscal discipline.
To further strengthen public finances, the President outlined a series of policy reforms aimed at boosting revenue and tightening controls. These include the enactment of the Tax Expenditure Bill and stricter management of tax exemptions.
He also announced that the Government is preparing to implement a Value-Added Tax system by 2027, describing it as a critical step toward modernizing Liberia’s tax framework and expanding the revenue base.
To support the record US$1.2 billion budget approved for FY2026, President Boakai said the Government will crack down on tax evasion, update outdated tax rules, raise the Goods Tax by a modest one percent, and revise excise rates.
Beyond revenue measures, the President highlighted efforts to attract credible investment and responsibly exploit Liberia’s natural resources to drive growth and job creation.
In 2025, the Government signed major agreements, including a Concession and Access Agreement with Ivanhoe for the Yekepa–Buchanan rail corridor and an amended deal with ArcelorMittal Liberia. Together, he said, these agreements represent approximately US$4 billion in committed investments.
President Boakai also announced the commencement of processes to reactivate the Putu Iron Ore Mine, a move expected to create jobs and accelerate development in Grand Gedeh County and the wider southeastern region.
In the hydrocarbon sector, the Government signed eight new petroleum agreements, four with TotalEnergies and four with Oranto Petroleum. Once fully developed, these projects are projected to attract about US$800 million in investment.
President Boakai the statement on Monday, January 26, 2026, went he delivered the State of the Nation Address (SONA) at the joint chambers of the National Legislature.
