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Monrovia, Liberia

Liberia

Status
Meaningful progress
Joined
27 September 2008
Latest validation
2019
Latest data from
2018
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Overview and role of the EITI

Liberia’s extractive sector – comprised of mining, oil and gas, forestry and agriculture – is the mainstay of the country’s economy, contributing 52% of national GDP in 2019. The mining sector is primarily driven by the production and export of iron ore, gold and diamonds. While exploration of oil and gas is ongoing, production has not yet commenced. According to EITI reporting, the extractive sector yielded 93% of total export earnings and 15% of government revenue in 2018 and 2019.

The extractive sector was significantly affected during the Second Liberian Civil War (1999-2003), in particular the timber and diamonds industries. Following the lifting of the UN sanctions against timber and diamonds in 2007 and the inauguration of the Sirleaf administration in 2006, stakeholders revived efforts to strengthen governance of the country’s natural resources to catalyse economic growth.

The EITI multi-stakeholder process in Liberia continues to be used as a platform to engage stakeholders and build trust between government, industry, civil society and communities. The LEITI process encourages national debate and dialogue on critical sector issues. Liberia EITI (LEITI) is also working to strengthen transparency around beneficial ownership of extractive companies and the disclosure of contracts.

Economic contribution of the extractive industries

15.01%
to government revenues
93.03%
to exports
51.99%
to GDP
0.59%
to employment
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Download country data

Download open data on government and company revenues, revenues by revenue stream and indicator, summary data and more.


Innovations and policy reforms

 

  • LEITI has played a role in promoting transparency of extractive contracts and concessions, which are published on LEITI's website.
  • An evaluation report and a beneficial ownership report, published in 2015, presented the outcome of a pilot on beneficial ownership disclosure.
  • post award process audit, conducted by LEITI in 2013, found that only 10% of contracts awarded between 2009 and 2011 complied with applicable rules. LEITI's 2012-2013 EITI Report included recommendations on strengthening transparency of licensing processes to improve compliance with legal frameworks. In 2016, LEITI published a second audit for contracts awarded between 2012 and 2015. 
  • The LEITI Act was enacted following the publication of the first EITI Report in 2009, requiring that all government agencies and extractive companies comply with the Liberia EITI process.

Trust is the greatest asset a country can have. Liberia EITI represents an important step in advancing our efforts to engage with stakeholders, to talk about our resources, and to build trust in our communities.

Ellen Johnson Sirleaf Former President of Liberia

Extractive sector data

Revenue collection

Level of detail 2

Revenue distribution

2018
Standardised revenue types

Top paying companies

2018

Extractive sector management

Licenses and contracts

The Minister of Lands, Mines and Energy grants mining licenses in accordance with the requirements set out in the mining law or regulations. The National Oil Company of Liberia (NOCAL), the state-owned enterprise in the petroleum sector, is mandated to  grant licenses and negotiate contracts in the petroleum sector based on an open bidding process.

The Ministry of Agriculture works with the National Investment Commission (NIC) to identify and propose investors for agricultural projects, which are approved by the president and ratified by parliament.

As per the 2009 LEITI Act, all contracts in Liberia are public and posted on the LEITI website.

Beneficial ownership

While there is no overarching law on beneficial ownership disclosure, provisions in the LEITI Act and the Petroleum Law provide the basis for mandating the collection and disclosure of beneficial ownership information. In 2017, the Liberian government made commitments to advance beneficial ownership disclosure through the Open Government Partnership.

In 2015, LEITI launched its first beneficial ownership report, which included ownership data on 49 extractive companies, and an evaluation report on its pilot project. The latest EITI reporting include ownership information on 12 extractive companies.

In September 2021, Liberia launched its participation in Opening Extractives, a global programme aiming to improve the availability and use of beneficial ownership data. A national steering committee, composed of representatives from the Corporate Affairs Commission, LEITI, the Liberia Business Registry and the Liberia Revenue Authority, oversee the programme’s implementation.

Revenue distribution

In accordance with the Liberia Revenue Authority Act, extractive revenues are collected by the Liberia Revenue Authority to be transferred to the Consolidated Fund. The fund consolidates all government revenues and is used for making disbursements. Extractive revenues are not earmarked for specific spending or regions.

Some extractive companies make direct contributions to communities in form of mandatory expenditures and voluntary CSR projects.   


EITI implementation

Governance

LEITI is administered by the Liberia Multi-Stakeholder Steering Group (MSG) and governed by the LEITI Act 2009. The MSG is hosted by the Ministry of Finance. The MSG is currently chaired by Hon. C. Mike Doryen, Managing Director of the Liberia Forestry Authority (FDA).

Validation

Liberia was found to have made meaningful progress in implementing the 2016 EITI Standard in May 2017, following its first Validation. The Validation identified 15 corrective actions to be addressed by the country’s next Validation, commenced in January 2022.

Timeline


Key documents


Contacts