By E. J. Nathaniel Daygbor
A significant shortfall in dividend contributions from Liberia’s State-Owned Enterprises (SOEs) is drawing renewed attention to government revenue forecasting and public financial oversight, as the administration of President Joseph Boakai advances plans for a proposed US$1.54 billion Fiscal Year 2027 national budget.
Government financial records for Budget Year 2025 show that authorities projected approximately US$14.07 million in dividend-related receipts from state-owned entities and other sources, but collected only US$1.34 million, resulting in a revenue gap of roughly US$12.74 million.
The bulk of the shortfall is linked to three major public institutions: the National Port Authority (NPA), Liberia Petroleum Refining Company (LPRC), and National Fisheries and Aquaculture Authority (NaFAA). Together, the entities were expected to contribute US$12.85 million to government revenue but reportedly accounted for only US$799,000 in actual receipts.
According to government accounts, the NPA was projected to contribute US$5.85 million but recorded no dividend payment. NaFAA similarly reported no contribution against an expected US$2 million, while the LPRC delivered US$799,000, falling short of its projected US$5 million contribution.
These entities are involved into meaningful commercial and economic activities. LPRC enjoys an expanded role within the country’s petroleum market. In July 2025, the company imported 10 metric tons of Premium Motor Spirit (PMS), commonly known as gasoline.
While financial experts caution that budget projections do not necessarily equate to legally declared dividends, the substantial difference between projected and actual receipts has prompted questions about the assumptions underlying national revenue forecasts and the effectiveness of oversight mechanisms governing public corporations.
The National Port Authority stands at the center of the debate after reporting approximately US$43.68 million in revenue during 2025.
The authority’s quarterly management reports indicate revenues of US$10.20 million in the first quarter, US$8.81 million in the second quarter, US$12.06 million in the third quarter, and US$12.62 million in the fourth quarter.
Despite these earnings, consolidated government financial statements reportedly showed no dividend payment from the NPA.
However, revenue figures alone do not necessarily reflect profitability. Financial documents indicate the NPA ended 2025 with approximately US$60.17 million in accounts receivable, suggesting that a significant portion of reported revenue had not yet been collected.
The situation raises several important questions. Did the NPA board declare a dividend during the fiscal year? What financial considerations influenced its decision? And what measures are being taken to recover outstanding receivables owed to the authority?
Analysts note that while the absence of dividend payments does not automatically suggest wrongdoing, public transparency requires a clear explanation of the institution’s financial condition and dividend policy.
The Liberia Petroleum Refining Company also reported a notable gap between projected and actual contributions.
Government projections anticipated US$5 million from the company in FY2025, yet only US$799,000 was recorded, leaving a difference of approximately US$4.2 million.
The shortfall has attracted attention because the corporation previously reported improved financial performance, including the declaration of a US$2.5 million dividend in 2024, up from US$1.3 million in 2023.
Observers are now seeking clarification regarding whether operational expenses, debt obligations, or other liabilities affected the company’s ability to meet projected payments. Questions have also emerged over whether additional transfers to government may have been categorized under accounts other than dividends.
NaFAA also failed to record any dividend payment despite a projected contribution of US$2 million.
The development follows similar concerns in FY2024 when the authority reportedly did not meet an expected US$1.2 million contribution to government revenue.
At the time, officials attributed the shortfall to the absence of board approval for the institution’s budget and indicated the issue would be addressed through budget adjustments. The latest figures have revived questions regarding the authority’s financial position and whether it generated sufficient earnings to support the government’s projections.
Despite the missing SOE contributions, the government managed to sustain spending during FY2025 because domestic revenue collections outperformed expectations.
The approved FY2025 budget stood at approximately US$880.66 million, with domestic revenue projected at US$804.63 million. Government financial reports indicate actual domestic revenue reached approximately US$847.05 million, exceeding the target by about US$42.43 million.
Tax revenue contributed approximately US$692.62 million, while non-tax revenue generated around US$154.44 million.
The stronger-than-expected collections helped cushion the impact of revenue shortfalls elsewhere. Nevertheless, fiscal analysts warn that when state-owned enterprises fail to deliver anticipated contributions, greater pressure is placed on other revenue streams, particularly taxes collected from businesses and ordinary citizens.
The issue assumes greater significance as lawmakers prepare to review the proposed US$1.539 billion FY2027 National Budget, submitted by Finance and Development Planning Minister Augustine Ngafuan.
Under Liberia’s Public Financial Management Act of 2009, state-owned enterprises are required to submit financial statements and annual reports to designated government institutions, while declared dividends must be paid into the Consolidated Fund.
The law also assigns oversight responsibilities to the Ministry of Finance and Development Planning and the Bureau of State Enterprises.
As the Legislature begins scrutiny of the FY2027 spending plan, analysts say lawmakers should closely examine assumptions regarding future SOE contributions and demand explanations for previous shortfalls.
In its latest report, the World Bank highlighted the importance of strengthening SOEs’ oversight, transparency, financial reporting, and performance as part of Liberia’s broader reform agenda. The report calls for greater attention to the fiscal risks associated with SOEs and clearer accountability for their financial and operational performance.
“State-owned enterprises play an important role in delivering essential services, but strong oversight is critical to ensuring that they operate transparently and sustainably,” said Bonnie Ann Sirois, World Bank Group Senior Public Sector Specialist and co-author of the report. “Improved financial reporting, accountability, and monitoring of fiscal risks can help protect public resources and strengthen their contribution to Liberia’s development.”
