Liberia’s public debt stock has climbed to US$2.8 billion as of December 2025, President Joseph N. Boakai disclosed in his Third State of the Nation Address on January 26, 2026, highlighting ongoing fiscal pressures but affirming that the government remains largely current on its obligations.
Boakai noted that the debt figure reflects an increase from the approximate US$2.6 billion portfolio inherited from the previous Coalition for Democratic Change (CDC) administration, which governed from 2018 to 2023. At the conclusion of that administration, Liberia’s total public debt was reported at between US$2.21 billion and US$2.6 billion, comprised of more than US$1 billion in domestic liabilities and about US$1.3 billion in external obligations.
According to the latest breakdown, the US$2.8 billion debt comprises US$1.2 billion in domestic debt, mostly owed to the Central Bank of Liberia and commercial banks, and US$1.6 billion in external debt, largely to multilateral lenders such as the World Bank and the African Development Bank. In 2025, Liberia paid US$120.1 million in debt service to both domestic and external creditors, Boakai said, underscoring efforts to manage obligations responsibly despite fiscal constraints.
To strengthen fiscal management and expand revenues, Boakai outlined a package of proposed reforms. These include enacting a Tax Expenditure Bill, tightening tax exemption controls, and preparing to introduce a Value-Added Tax (VAT) system by 2027. For the US$1.2 billion fiscal year 2026 budget, the government plans measures to broaden the tax base, clamp down on tax evasion, update tax rules, raise the Goods Tax by 1 percent, and revise excise duties to boost domestic revenue mobilisation.
On the investment front, President Boakai highlighted initiatives aimed at attracting new capital and responsibly developing Liberia’s natural resources. In 2025, the government signed several major agreements, including a Concession and Access Agreement with Ivanhoe Mines for the Yekepa–Buchanan rail corridor, an amended deal with ArcelorMittal Liberia, and the reactivation of the Putu Iron Ore Mine in Grand Gedeh County, expected to spur job creation and economic activity in the southeast.
The administration also concluded eight new petroleum agreements, four each with TotalEnergies and Oranto Petroleum, which, once fully implemented, are anticipated to attract roughly US$800 million in investment into Liberia’s hydrocarbon sector. Combined, these initiatives represent approximately US$4 billion in committed investments, which officials say will support economic growth, infrastructure development, and employment opportunities.
