MONROVIA — Liberia is "on track" for a second Millennium Challenge Corporation (MCC) Compact following its strong performance on the 2025 MCC scorecard, Finance and Development Planning Minister Augustine Kpehe Ngafuan said Thursday, while defending the government's record $1.2 billion national budget for 2026.
Appearing on the Liberia Broadcasting Corporation's Super Morning Show, Ngafuan said Liberia's passing of the MCC scorecard was "a strong signal of renewed confidence" in the country's governance and fiscal management.
"We are happy that we've made the pass," Ngafuan said. "The minimum you need to pass is half of the indicators, and Liberia has crossed that benchmark. This puts us on the path of consideration for a second compact."
MCC Eligibility and Key Indicators
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Under the MCC's revised criteria, countries must pass at least half of 22 indicators, with "Control of Corruption" and "Political Rights and Freedom" being mandatory.
"Even if you pass 20 indicators and fail those two, you fail overall," Ngafuan said.
He pointed out that Liberia's improved performance in the governance benchmarks was critical in maintaining eligibility for continued U.S. support.
Navigating a 'Bumpy Road,' Ngafuan acknowledged challenges along the way, noting that while Liberia was declared eligible for a second compact in December 2024, the transition in the U.S. administration earlier this year temporarily paused many MCC and USAID programs.
"The entire MCC team was put on hold," he said. "Almost all USAID projects, except five out of twenty-nine, were paused, affecting over $300 million in aid support."
Despite the disruptions, Liberia remained under review while 16 other countries were dropped from consideration.
Renewed U.S. Engagements
Ngafuan pointed to renewed engagement between the Boakai administration and U.S. officials during President Joseph Boakai's visit to Washington and the World Bank and IMF Annual Meetings.
"We met with the MCC team, the U.S. Assistant Secretary of the Treasury, and others," he said, adding, "Those engagements helped resuscitate our relationship and paved the way for the MCC delegation's visit to Monrovia in September."
The MCC board is expected to meet in December to determine whether Liberia remains eligible and to consider new funding for the second compact. Energy, Roads seen as priorities if approved, Ngafuan said the next compact will focus on energy and infrastructure, two areas he described as "the biggest constraints" to Liberia's growth.
"Energy remains the number one constraint," he said. "When businesses spend more on generator fuel, profits are reduced. Lower energy costs mean more growth, more jobs, and more opportunities." He also cited ongoing road projects, including the Ganta-Harper Highway, as examples of continued investment in public infrastructure.
"The road to development begins with the development of roads," he said. "We are not just talking; we are taking action."
Record 2026 Budget
Although the scrutiny of the budget continues, with many arguing that it does not reflect the country's preparedness for development as more of it is for paying of salaries and operations at various government offices across the country, Ngafuan defended the administration's $1.2 billion national budget for 2026, the largest in Liberia's history, noting that it is development oriented and will serve the country well.
He said the budget reflects confidence in the economy and continued reforms at the Liberia Revenue Authority (LRA).
"When we unveil the budget and people see billions, some begin to doubt or criticize that's not wrong," he said. "But we've proven that doubters can doubt and critics can criticize; that hasn't stopped us from hitting our targets."
Liberia generated nearly $700 million in domestic revenue in 2024, a record figure, according to the minister. He credited tax digitization, improved efficiency, and logistical support for the LRA. Ngafuan projected 5.4% GDP growth in 2026 and said even without a one-time $200 million signature bonus from a deal with ArcelorMittal, "organic domestic revenue surpasses $1 billion."
"Even when you take off the one-time injection, you're left with $1.011 billion," he said. "We have crossed the billion-dollar threshold, and we do not intend to take backslides."
Spending Priorities
Ngafuan said the budget is aligned with President Boakai's ARREST Agenda for Inclusive Development, focusing on Agriculture, Roads, Reconciliation, Education, Sanitation, and Tourism. He said domestic revenue represents 94% of the total budget, compared with 6% from external sources, "showing Liberia's growing self-reliance."
Key allocations include $50 million for road development, particularly along the Monrovia-Sierra Leone highway; $50 million for the Liberia Electricity Corporation to implement a smart metering project; and nearly $14 million for county and district development funds across Nimba, Grand Bassa, and Bomi counties.
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The University of Liberia is expected to receive $6 million, while funding is also allocated for ELWA Hospital staff support and completion of the new Redemption Hospital early next year. The Judiciary will get an additional $8 million for new court construction and the digitization of judicial records.
Fiscal Credibility
Ngafuan urged lawmakers to avoid inflating the budget for political reasons, saying fiscal credibility was more important than appearances.
"We cannot compromise the credibility of the budget just to please anyone," he said. "If we simply inflated it to $2 billion, no one would believe our numbers anymore."
He described the budget as "a roadmap for growth and self-reliance."
"At the end of the day, the budget is a plan, a plan that says how we will raise and spend money for the Liberian people," he said. "We are confident we'll meet our targets and continue this path of growth."
The Millennium Challenge Corporation is a U.S. government agency that provides grant funding to countries that demonstrate progress in good governance, economic freedom, and investment in people. Liberia signed its first MCC compact in 2015, focusing on energy and road infrastructure. If approved, the second compact could begin in early 2026 with an expanded focus on infrastructure, private-sector competitiveness, and governance reforms.
