IPNEWS: Finance and Development Planning Minister Augustine Kpehe Ngafuan has assured Liberia’s banking sector that the Boakai administration is taking deliberate steps to restore credibility, repay outstanding obligations, and ensure that government becomes a partner—not a burden—to commercial banks.
Speaking Saturday evening at the 60th Anniversary celebration of the Liberian Bank for Development and Investment (LBDI), Ngafuan acknowledged past strains between government and the banking sector, openly apologizing for years of defaults and missed obligations while outlining a new approach centered on fiscal discipline and confidence-building.
“The government cannot be a burden. The government must be a blessing,” Ngafuan declared. “We have been a burden before. For that, we say we are sorry.”
LBDI’s Recovery and Government Responsibility
Ngafuan described LBDI’s relationship with government as “unique,” noting that while state affiliation can provide stability, it can also expose the bank to fiscal risk if poorly managed.
“That relationship, depending on how it turns, can be a blessing or a burden,” he said. “Especially in recent times, it has been a mixed situation.”
He credited President Joseph Nyuma Boakai for initiating what he termed a “resuscitation plan” for LBDI, stating that the bank’s financial indicators and aggregates have improved significantly compared to where they stood when the administration assumed office.
“Where the bank was when the President met it, and where it is today, are two different things,” Ngafuan said. “But we cannot afford to rest on our oars.”
Debt Repayment Central to Banking Confidence
In one of his strongest policy signals to the financial sector, Ngafuan disclosed that the FY2026 National Budget includes nearly US$90 million earmarked specifically to repay commercial bank debts—an effort he said is essential to rebuilding trust.
“We want to regain your confidence,” he told bankers. “We want to meet our obligations so you can do what you know how to do best—empower the private sector.”
Ngafuan admitted that government had previously acted as what he termed the “defaulter-in-chief”, a practice he said must end.
“We cannot be the defaulter-in-chief in this environment,” he said. “We have been—and for that, we say we are sorry.”
He specifically apologized to LBDI, International Bank (IB), and Ecobank, stating that the government is “drawing a new line of credibility” in coordination with the Central Bank of Liberia (CBL).
Fiscal–Monetary Coordination Highlighted
Ngafuan emphasized improved coordination between the Ministry of Finance and the Central Bank, describing the fiscal and monetary authorities as working “hand in hand” to stabilize and grow the economy.
“The coordination between the Central Bank—the monetary authority—and the Ministry of Finance—the fiscal authority—could not be more excellent,” he said. “We study the economy together and take complementary actions.”
He cited upcoming reforms, including the interoperability of mobile money platforms, as key steps toward deepening financial inclusion and stimulating economic activity.
“People don’t know what that means,” Ngafuan said. “It means we are oiling the engine of the economy.”
Call for Innovation and Staff Empowerment
Turning to LBDI’s future, Ngafuan warned that competition in the banking sector is intensifying and urged continuous innovation.
“In this environment, if you don’t innovate, you evaporate,” he said. “There are many rivers to cross and mountains to climb.”
He also called on bank leadership to ensure staff benefit from institutional progress.
“As the bank improves, let the staff improve,” he said. “It has never been a lack of will; it has been a lack of way.”
Looking Ahead
Ngafuan concluded by urging the banking sector to seize emerging economic opportunities, stressing that government reforms aimed at removing growth constraints would unlock private-sector expansion and position banks as engines of national development.
“Things are happening in this country,” he said. “And great things will continue to happen.” The ceremony concluded with the launch of LBDI’s new digital suite, marking another milestone in the bank’s 60-year history as Liberia’s flagship development finance institution.
