Liberia: Freeman Challenges Liberia’s US$1 Billion Revenue Story, Says US$400M Is Being “Squeezed” From Economy

Liberia’s Economist and Politician Mr. Simeon Freeman

MONROVIA — Liberia’s historic crossing of the US$1 billion domestic revenue mark is being celebrated by the government as a major fiscal achievement.

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By Edwin G. Genoway, Jr

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Liberia’s economist and politician Simeon Freeman has raised fresh questions over Liberia’s revenue system, claiming that approximately US$400 million is being squeezed out of the local economy through charges that are not reflected in the government’s budgetary revenue figures.

Freeman said the amount includes payments associated with port operations, terminal charges, shipping companies, tracking fees and other costs incurred when goods enter Liberia.

While acknowledging that international trade taxes account for a significant portion of government revenue, he argued that the broader financial burden imposed on importers and consumers extends beyond what appears in the national budget.

“If you put all of that inflow together, you’re talking about US$400 million that is squeezed out of the local economy,” Freeman stated.

Freeman argues that these additional costs ultimately find their way into the prices Liberians pay for goods and services, particularly in an economy heavily dependent on imports. “By mopping money from the local economy, it makes the cost of goods very expensive,” he said, linking the alleged unbudgeted charges to rising consumer prices and declining purchasing power.

“How much money is circulating out of the pockets of Liberian consumers and businesses through charges that do not appear as direct government revenue in the national budget,” he intimated.

In a pointed economic commentary, Freeman challenged the growing celebration around government’s record revenue performance, arguing that the headline figure alone does not tell the full story of Liberia’s economic condition.

His argument is that government can increase revenue while ordinary Liberians simultaneously become poorer in real terms if the cost of raising that revenue is ultimately transferred to consumers through higher prices. “Every aspect of this budget is mopping money from the local economy,” Freeman said.

“By mopping money from the local economy, it makes the cost of goods very expensive.” The comments come days after President Joseph Nyuma Boakai announced that Liberia had raised more than US$1 billion in domestic revenue during the first nine months of 2026.

The President described the achievement as a historic milestone and said the money was mobilized through taxes, duties, fees and other lawful payments from individuals and businesses. He also said the government intends to ensure that the revenue translates into benefits that Liberians can see and feel.

But Freeman’s analysis challenges Liberians to look beyond the revenue headline.

‘The money is coming from somewhere’

Freeman’s argument rests on a basic economic principle: government revenue does not appear in isolation from the economy, he said

Taxes, duties, fees and other government charges are ultimately paid by individuals and businesses. Where businesses incur higher costs, those costs can be passed on to consumers through higher prices. That, Freeman argues, is the part of the US$1 billion story that deserves greater public scrutiny.

“The government gets the money by mopping and squeezing it from the economy,” he said “What that means is, when tuition goes up, it’s not the school that you blame.” For Freeman, the issue is therefore not whether government should collect revenue.

It is whether the country’s revenue system is increasing the productive capacity of the economy or simply extracting more money from an economy whose businesses and households are already under pressure.

Freeman focused particularly on Liberia’s import-dependent economy

He argued that the official tax figures do not necessarily capture the full range of costs associated with moving goods into Liberia.

According to his analysis, importers face customs-related taxes alongside port, terminal, shipping, tracking and other charges.

The economist contends that when those costs accumulate, they eventually become part of the price paid by consumers. “Something costs one dollar in China, very cheap. One dollar in China comes to Liberia and costs about 10, 15 dollars. Now you understand why.”

Freeman’s specific estimate that approximately US$400 million is being removed from the economy through additional charges is still subject to independent verification. But his broader economic argument is more fundamental: the price consumers pay at the end of the supply chain reflects not only the original cost of the product, but also the taxes, fees and other costs accumulated along the way.

The uncomfortable connection between revenue and prices

Freeman linked government revenue collection to the everyday economic struggles facing Liberians. He pointed to rising transportation costs, food prices, rent and education expenses as examples of the pressure households are experiencing.

“When government mop up the money, they spend it on themselves and not necessarily on us,” Freeman argued.

The IMF has reported that Liberia’s recent revenue performance has been supported by stronger income and international trade taxes, among other sources. It has also emphasized the importance of maintaining a prudent fiscal stance and improving the quality of public spending.

Freeman also turned his attention to Liberia’s debt

He argued that a significant portion of the government’s fiscal resources is already committed to servicing debt.

The FY2026 budget and subsequent fiscal planning have indeed placed substantial emphasis on debt management, while the IMF has continued to monitor Liberia’s debt position as part of its economic program.

Freeman’s concern is that Liberia could find itself in a cycle where government collects more revenue, borrows more money to finance development, and then uses an increasing amount of future revenue to service those obligations.

“You have to keep borrowing repeatedly for every major project,” Freeman said. His broader warning is that revenue growth without corresponding growth in production, investment and household incomes may not fundamentally transform the economy.

President Boakai has argued that the billion-dollar milestone must ultimately translate into tangible improvements in the lives of Liberians.