MONROVIA, Liberia, September 10, 2026 — Finance and Development Planning Minister Augustine Kpehe Ngafuan has acknowledged that government’s failure over the years to pay contractors and vendors on time has contributed to Liberia’s non-performing loan problem, saying the Boakai administration is seeking to restore the state’s credibility by honoring its financial obligations.
Ngafuan said delayed government payments can leave businesses unable to meet their obligations to commercial banks, effectively turning government arrears into non-performing loans (NPLs).
“Over the years, government itself has sometimes been one of the biggest defaulters in our economic environment,” Ngafuan said.
He spoke at the National Non-Performing Loans Resolution Conference convened by the Central Bank of Liberia (CBL), which brought together policymakers, regulators, members of the judiciary, financial institutions, development partners and private-sector representatives.
According to Ngafuan, President Joseph Nyuma Boakai’s administration has made restoring government’s financial credibility a policy priority.
“Our message is simple. When this government contracts with you, government must pay you,” he said.
The Finance Minister said the government is addressing legacy debts while seeking to prevent the accumulation of new arrears through stronger fiscal discipline.
He disclosed that nearly US$235 million has been budgeted for debt service during the current fiscal year, including more than US$90 million in obligations to commercial banks.
The government has also budgeted about US$25 million for debt service to the World Bank this year, according to Ngafuan.
“When Liberia borrows, Liberia must repay. When Liberia signs an agreement, Liberia must honor it,” he said. “Credibility is an economic asset.”
Ngafuan said resolving non-performing loans should not be viewed solely as a banking-sector issue because the consequences affect businesses, employment and access to economic opportunities.
“At first glance, non-performing loans may sound like a technical banking issue,” he said. “But NPLs are not just about banks. They are about businesses. They are about jobs.”
He said high levels of distressed loans can determine whether farmers obtain financing to expand production, entrepreneurs secure capital to grow their businesses and women operating small enterprises gain access to working capital.
Ngafuan noted that Liberia’s banking-sector NPL ratio declined from 19.1% at the end of 2024 to about 12.9% at the end of 2025.
Despite the decline, he cautioned that the volume of distressed assets remains substantial.
“We should welcome the improvement, but we should not confuse improvement with victory,” he said.
The Finance Minister argued that the quality of commercial banks’ loan portfolios is closely linked to the economy’s overall performance.
“When economic growth is strong, businesses prosper. When inflation is contained, purchasing power is protected. When government pays its bills on time, businesses maintain their cash flows,” Ngafuan said.
He said reducing non-performing loans and expanding access to finance would require sustained action to strengthen the economy and create an environment in which the private sector can drive growth and employment.
“Government can build roads, schools, hospitals, and other public infrastructure, but government cannot and should not be the employer of every Liberian,” Ngafuan said. “Sustainable prosperity requires businesses that invest, innovate, and create jobs.”
He said the government would continue working with the judiciary, Legislature, Ministry of Justice, Central Bank and other stakeholders to strengthen the legal and institutional framework governing lending, debt recovery and access to credit.
Ngafuan said restoring confidence in government’s ability to meet its financial obligations, strengthening the credit environment and supporting private-sector growth are essential to creating jobs and expanding economic opportunities for Liberians.
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