As Liberia's public debt climbs to US$2.70 billion, the Government has reiterated that the settlement of legally owed obligations--including arrears to media institutions--is not discretionary but a statutory duty anchored in the country's Public Financial Management (PFM) Law.
Finance and Development Planning Minister Augustine Kpehe Ngafuan gave the assurance on Tuesday when a delegation from the Publishers Association of Liberia (PAL) paid a follow-up visit to his office to inquire about outstanding payments owed to media houses.
"Once the government owes you, we are under obligation to pay you," Minister Ngafuan said, stressing that debt service sits at the top of the government's expenditure priorities. "Under the Public Financial Management Law, the first call on revenue is debt service--not any other payment."
His remarks come against the backdrop of a rapidly expanding debt portfolio, which the Ministry of Finance and Development Planning (MFDP) places at US$2.70 billion as of September 2025. Of this amount, US$1.08 billion (40.2%) is domestic debt--largely arrears owed to local banks, contractors, suppliers, and institutions--while US$1.62 billion (59.9%) is external debt, mostly concessional loans financing roads, energy, health, and education projects.
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For Fiscal Year 2026, the Government has allocated US$230 million for debt servicing, including US$159 million for domestic obligations and US$68 million for external creditors, underscoring what officials describe as a deliberate effort to restore fiscal credibility.
Deputy Minister for Economic management at MFDP, Dehpue Y. Zuo has previously framed the issue in strictly legal terms. "The first priority of the government upon receiving revenue is to service debt," Zuo said. "This is not policy preference--it is the law."
Liberia's Public Financial Management Act of 2009, as amended, is explicit on the matter. Section 38(1) of the Act states: "Public debt service payments shall have first charge on the Consolidated Fund and shall be paid when due." The law further provides in Section 38(2) that "no expenditure shall be authorized that would result in the non-payment or delay of public debt obligations."
These provisions place debt service--including arrears inherited from previous administrations--on the same non-negotiable footing as salaries and statutory transfers, effectively limiting the government's fiscal flexibility but reinforcing discipline.
Minister Ngafuan told the PAL delegation that the Government has already received verification reports from the General Auditing Commission confirming the legitimacy of media claims and that payments are being processed in phases. He recalled that while attending the annual convention of the Association of Liberian Journalists in the Americas in the United States earlier this year, he publicly committed to clearing media arrears. Upon his return, a first tranche was paid, with subsequent payments scheduled.
"We do not take delight in owing anyone," the Minister said. "When a government pays its debts, it builds credibility. People are more willing to do business with a government they trust to honor its obligations."
PAL President Alphonso Toweh told the Minister that prolonged payment delays have placed severe strain on media institutions already struggling to survive. He urged the Ministry to expedite settlement before the end of the year, noting that while governments change, obligations endure.
Vice President of PAL, Bai Sama G. Best, echoed the concern, emphasizing that delayed payments directly undermine production capacity. "We are a small body," he said. "When government owes us for long periods, it becomes difficult to publish, to pay staff, and to function independently."
Beyond the media sector, economists note that Liberia's aggressive debt-servicing posture reflects a broader strategy to restore trust with domestic vendors, stabilize the local economy, and preserve access to international financing. In the 2025 national budget, debt service rivals and in some cases exceeds allocations to major social sectors, with US$230 million set aside for repayments compared to US$132 million for education and US$101 million for health.
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While critics warn that such prioritization risks crowding out development spending, MFDP officials argue that failure to honor debt obligations would be far more costly--triggering defaults, undermining investor confidence, and eroding public trust.
Minister Ngafuan also addressed concerns about press freedom, stating that settling media debt is not a tool for influence. "We want the media to remain independent," he said. "If we are wrong, write it. If we are right, say it. Your reporting helps government navigate."
As Liberia grapples with a debt burden exceeding US$2 billion, the administration's handling of legacy arrears--particularly to domestic creditors--has become a litmus test for fiscal responsibility. For vendors and citizens alike, timely payment is increasingly seen not merely as an accounting exercise, but as a measure of government credibility and respect for the rule of law.
