By Amos Harris
The government’s ambitious US$1.2 billion revenue target for Fiscal Year 2026 (FY2026) is facing severe headwinds, according to a stark warning issued by the House of Representatives’ Ways, Means, and Finance Committee. The committee asserts that achieving this goal will be “difficult to achieve” unless sweeping reforms, stronger enforcement mechanisms, and rigorous accountability measures are implemented immediately across key revenue-generating institutions.
The caution is documented in the committee’s preliminary report on the revenue component of the Draft FY2026 National Budget. The report follows weeks of intensive scrutiny, including assessments of revenue forecasts, public appearances by major government agencies, and reviews of financial submissions from State-Owned Enterprises (SOEs).
The draft budget anticipates a substantial 36 percent increase in revenue over the approved FY2025 budget. The projected US$1.2 billion is expected to be sourced primarily from domestic streams (US\$1.11 billion), with external partners slated to contribute the remaining US$72 million.
However, the report highlights current shortfalls. As of November 17, 2025, government collections stood at US\$719 million, leaving an outstanding US$160 million yet to be collected to meet the target for the current fiscal period.
The committee reported widely mixed revenue performances and pointed to systemic failures in financial governance, particularly within SOEs:
- Financial Red Flags: The Liberia Petroleum Refining Company (LPRC) was flagged for significant inconsistencies in its financial submissions and has been ordered to submit missing statements before any further revenue assessments can be conducted.
- Non-Compliance: The National Port Authority (NPA) and several other SOEs were cited for submitting incomplete or inadequate financial documents and have been instructed to refile correct information for proper evaluation.
- Unrealistic Forecasts: Projections for major entities, including LPRC, NPA, NAFAA, the Liberia Telecommunications Authority (LTA), LiMA, and the Road Fund, were all labeled as unrealistic based on their current operational performance trends.
- Missing Revenue: The financial status and collection outlook for the Assets Recovery Fund, which is projected to yield US$10 million, remain unclear.
Conversely, the Liberia Maritime Authority (LiMA) was noted as being on course to meet its US\$14 million revenue target. Lawmakers, however, rejected proposals to increase LiMA’s assessment due to volatile global uncertainties in the shipping industry.
The report also noted that the National Lottery Authority (NLA) and the Liberia Immigration Service (LIS) hold the potential to generate significantly more revenue than currently projected, provided compliance mechanisms are effectively enforced. Additionally, lawmakers noted that several pending oil and energy agreements under review could provide unbudgeted revenue boosts if finalized.
In a direct response to the failings, the Ministry of Finance and the Liberia Revenue Authority (LRA) have proposed new tax laws and recommended shifting collection authority for certain revenue sources from underperforming SOEs directly to the LRA to improve efficiency.
To ensure the US$1.2 billion target becomes achievable, the Ways and Means Committee recommended a comprehensive set of actions:
- Legislative Fast-Tracking: Urgently process major tax legislation to strengthen collection frameworks.
- Centralized Collection: Mandate the transfer of appropriate SOE revenue streams to the LRA.
- Enforcement & Penalty: Institute mandatory audits and strict penalties for entities that submit inaccurate or late financial documents.
- Forecasting Improvement: Adopt improved national revenue forecasting methods to ensure realistic planning.
- Council Mobilization: Strengthen inter-agency coordination through the establishment of a functional Revenue Mobilization Council.
The committee concluded that while the US$1.2 billion goal is “attainable,” it absolutely hinges on immediate implementation of stronger enforcement, improved compliance, better SOE performance, and realistic projections. Without these decisive actions, the government risks a significant failure to meet its ambitious revenue expectations for the upcoming fiscal year.
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