By Alusine Sesay
Freetown, Sierra Leone – July 31, 2026: Finance Minister Sheku Ahmed Fantamadi Bangura on Friday presented a Supplementary Budget to Parliament, warning that global oil price volatility triggered by the Middle East crisis has forced Sierra Leone to revise its 2026 fiscal framework.
Speaking at Tower Hill, Bangura said the government’s priority is to “strengthen budget credibility to safeguard macroeconomic stability and protect livelihoods of citizens.” The revised plan introduces fuel subsidies, increases support for electricity generation, and adjusts revenue and expenditure targets to reflect the economic fallout.
Economic Context
Sierra Leone entered 2026 with strong fundamentals, recording 4.8% GDP growth in 2025 and reducing inflation to 4.4% by December 2025. However, the closure of the Strait of Hormuz in February 2026 pushed oil prices to US$138 per barrel in April, forcing domestic fuel prices up to NLe35 per litre for petrol and NLe40 for diesel. Inflation surged to 14.8% by June 2026, while growth projections were revised down to 4.0% for the year.
Budgetary Adjustments
- Revenue: Domestic revenue revised downwards to NLe21.5 billion, reflecting weaker activity and lower GST and customs collections.
- Expenditure: Total spending increased to NLe30.3 billion, driven by subsidies for fuel and electricity.
- Deficit: The overall budget deficit widened to 2.8% of GDP, financed through foreign and domestic borrowing.
Policy Measures
The Minister outlined measures to mitigate the shocks:
- Revenue Mobilisation: Expansion of GST base, stricter compliance in the extractive sector, and improved petroleum revenue tracking.
- Expenditure Control: Rationalisation of capital spending, wage bill management, and tighter cash controls.
- Debt Management: Continued moderation of public debt, with domestic primary surplus projected at 1.1% of GDP.
- Social Protection: Funding for Free Quality School Education and school feeding programmes maintained despite fiscal pressures.
Parliamentary Debate
Bangura explained that revised allocations to Ministries, Departments, and Agencies were based on shifting national priorities and the need for efficient use of public resources.
Responding, the Deputy Speaker emphasized effective implementation, accountability, and compliance to ensure the approved measures achieve their intended outcomes. During debate, MPs described the supplementary budget as evidence of a responsive government adapting to changing economic conditions. Calls were also made for a more strategic approach to developing Sierra Leone’s mining sector to drive growth and job creation.
Looking Ahead
The Finance Minister assured Parliament that Sierra Leone’s economy remains resilient, citing IMF support through the Extended Credit Facility and a new US$211.5 million Resilience and Sustainability Facility to address climate change risks.
Bangura concluded that the supplementary budget reflects government’s determination to protect livelihoods while sustaining macroeconomic stability.