Elwood T. Nettey: Liberia Needs Fiscal Decentralization Reforms

• Liberia's Comptroller General, Elwood T. Nettey, advocates for fiscal decentralization to enhance public service delivery and financial accountability.
• A Liberian delegation is studying Rwanda's successful model for integrating public financial management at local government levels.
• Nettey highlighted Liberia's current reliance on centralized systems and uneven implementation of its Integrated Financial Management Information System (IFMIS).
• Rwanda's Minister of State for National Treasury, Godfrey Kabera, detailed institutional arrangements that ensure financial discipline and effective local response to development needs.
• Liberian officials aim to strengthen local governance and resource management by adapting lessons from Rwanda's district financing and budget monitoring.

Successful decentralization transcends mere administrative function transfers; it must yield measurable improvements in both service delivery and financial accountability.

Liberia's Comptroller and Accountant General, Elwood T. Nettey, has underscored the critical need for comprehensive decentralization reforms aimed at enhancing public service delivery, bolstering financial controls, and ensuring greater accountability in the administration of government resources. Speaking from Kigali, Rwanda, on October 26, 2026, during Liberia's study tour focused on decentralization, Nettey emphasized that the transfer of responsibilities to local governments must be accompanied by robust financial management systems and stringent accountability mechanisms.

Currently, Liberia's administrative and financial functions, including procurement and salary disbursements, remain heavily reliant on centralized government systems. The ongoing study tour is designed to provide Liberian officials with direct exposure to Rwanda's successful experience in fiscal decentralization, particularly concerning the management of public finances, resource allocation, and financial oversight at the local government level. The objective is to glean insights that can inform Liberia's own public financial management reform efforts, moving towards a system where local authorities are empowered with greater financial responsibilities while maintaining effective central government oversight.

Comptroller General Nettey specifically lauded Rwanda for its integrated public financial management systems, which effectively link national development planning and budgeting with expenditure management, monitoring, and accountability at the local level. This comprehensive approach serves as a key learning point for Liberia as it seeks to strengthen its own local governance structures.

Welcoming the Liberian delegation, Rwanda's Minister of State for National Treasury, Godfrey Kabera, highlighted the enduring bilateral relationship between the two nations and the importance of collaborative knowledge-sharing in advancing public sector reforms. Minister Kabera detailed Rwanda's established institutional arrangements designed to coordinate fiscal decentralization, provide support for district budget preparation, monitor implementation, and ensure transparent transfers of resources to local governments. These mechanisms are crucial for fostering financial discipline and enabling local authorities to effectively address development priorities within their respective jurisdictions, offering a compelling Rwanda fiscal decentralization model for Liberia to consider.

Despite Liberia's introduction of the Integrated Financial Management Information System (IFMIS), its implementation across various government institutions remains inconsistent, as acknowledged by Comptroller General Nettey. He stressed the imperative for practical measures to fortify financial controls, improve budget execution, and ensure that local governments are fully capable of accounting for the resources entrusted to them. Nettey reiterated that successful decentralization transcends mere administrative function transfers; it must yield measurable improvements in both service delivery and financial accountability.

Dr. Romeo D. N. Gbartea, who coordinates fiscal decentralization at Liberia's Ministry of Finance and Development Planning (MFDP), noted that while Liberia and Rwanda share similar legal and institutional frameworks, their progress in implementing decentralization differs significantly. Dr. Gbartea identified Rwanda's fiscal decentralization structures, district financing arrangements, and budget monitoring systems as invaluable lessons. He expressed optimism that this experience would assist Liberia in strengthening its local governance institutions, improving financial management, and developing more effective mechanisms for allocating and monitoring public resources at the county level, thereby enhancing Liberia local government accountability.

The ongoing fiscal decentralization reforms in Liberia, particularly the emphasis on strengthening financial controls and accountability at the local government level, carry significant implications for legal and compliance professionals. As responsibilities and financial oversight shift towards sub-national authorities, the landscape for public procurement, resource allocation, and contractual obligations will evolve. Entities engaging with these local government bodies will face new compliance requirements and heightened scrutiny.

Lawyers and compliance officers must closely monitor these developments to provide updated advice on financial oversight, contractual due diligence, and regulatory adherence. The success of Liberia's decentralization hinges on robust legal and financial frameworks that ensure transparency and prevent misuse of funds, making proactive engagement with these reforms essential for all stakeholders.

Lawyers and compliance officers in Liberia should closely monitor the ongoing fiscal decentralization reforms, particularly the strengthening of financial controls and accountability mechanisms at the local government level. These changes will impact public procurement, resource allocation, and compliance requirements for entities engaging with sub-national authorities, necessitating updated advice on financial oversight and contractual obligations.

Source: Reporting based on official statements from Kigali.