As Global Shocks Test US$1.2B Budget Ambitions
Monrovia, Liberia – Augustine Kpehe Ngafuan, the minister of finance and development planning for Liberia, has vigorously defended the government’s economic stewardship, citing recovery and resilience in the face of severe external shocks and growing international unpredictability.
Speaking on OK FM on Tuesday, April 7, 2026, Ngafuan said that the government had successfully weathered a challenging fiscal year in 2025, reporting 5.1 percent economic growth and producing the highest-ever domestic income of US$840 million. For the first time, the national budget exceeded US$1 billion thanks to the performance, which he characterised as proof of prudent economic management.
He pointed out that the successes coincided with a significant setback: the abrupt removal of over $300 million in foreign aid after a number of USAID-funded initiatives were shut down. According to him, the move disrupted critical sectors including agriculture, education, healthcare, and school feeding, raising concerns about the country’s fiscal stability.
Ngafuan, “Rather than succumb to pessimistic projections, the government regrouped, recalibrated, and pressed forward, crediting President Joseph Nyuma Boakai and the broader economic team for stabilizing the economy under pressure.”
Based on a proposed national budget of US$1.2 billion, the Minister estimated a growth rate of 5.6 percent in 2026. But he cautioned that Liberia’s tenuous gains are seriously threatened by growing geopolitical tensions, especially in the Strait of Hormuz.
Liberia, a net importer of petroleum, is already struggling with rising oil costs worldwide. While describing steps to lessen the burden on common people, such as improvements in transport, healthcare, and other vital services, Ngafuan defended recent hikes in fuel prices as necessary to ensure supply.
“We are hoping for the best, but preparing for the worst, underscoring the government’s cautious outlook,” he added.
However, Ngafuan stressed that the government’s approach to dealing with an increasingly unstable global economic climate will continue to be centred on bolstering domestic revenue, upholding fiscal restraint, and safeguarding vulnerable populations.
Reported by: Prince Saah
