MONROVIA – President Joseph Nyuma Boakai has issued Executive Order No. 157, exempting the Liberia Electricity Corporation (LEC) from customs duty and Goods and Services Tax (GST) on a wide range of electricity sector inputs, including fuel, equipment, materials, and vehicles. The order, signed on January 23, 2026, takes immediate effect and is aimed at reducing operational costs and improving access to affordable electricity across Liberia.
The Executive Order replaces Executive Order No. 138, which previously granted similar exemptions but has since expired. According to the government, the lapse created renewed financial pressure on LEC, particularly at a time when the utility is grappling with rising fuel prices and expanding its generation and distribution infrastructure.
In the preamble to the order, President Boakai acknowledged the urgent need to minimize fuel-related expenses to enable LEC to supply electricity at reasonable and stable rates. The government noted that fuel costs remain one of the most significant drivers of electricity tariffs in Liberia, especially given the country’s continued reliance on fossil fuels.
The Executive Order highlights that LEC is operating under difficult external market conditions, including volatile global fuel prices, while simultaneously investing in long-term solutions such as expanded hydroelectric generation at the Mount Coffee Hydropower Plant. These dual pressures, the government said, have elevated operational costs and strained the corporation’s finances.
Heavy Fuel Oil (HFO), which is still widely used for thermal power generation, was singled out as a major financial burden. The costs associated with importing, transporting, storing, and utilizing HFO have limited LEC’s ability to accelerate its transition to cheaper and cleaner hydroelectric power.
The government warned that without intervention, these rising costs could further increase the price per kilowatt-hour, making electricity even less affordable for households and businesses already struggling under a high cost of living. The exemption policy is therefore framed as a protective measure for consumers.
Under the Executive Order, LEC is exempted from customs duty and GST on petroleum products, including crude petroleum oils, diesel, and fuel additives. Lubricants and other consumables essential to power generation are also covered, reducing a category of expenses described as volatile and destabilizing to LEC’s monthly budget.
The exemptions extend beyond fuel to include thermal power generation equipment such as steam turbines, gas turbines, engines, boilers, compressors, pumps, and fuel storage tanks. These items are critical for maintaining existing plants and ensuring uninterrupted power generation.
In a notable expansion, the Executive Order also covers renewable energy equipment, including solar photovoltaic panels, inverters, hydraulic turbines, wind-powered generating sets, and electric generating sets. This signals the administration’s intent to encourage a gradual shift toward renewable energy sources.
Battery energy storage systems are also included in the exemption list. Lithium-ion batteries, power conversion systems, and electronic control modules used for energy storage will now be imported duty-free, potentially strengthening grid stability and supporting future renewable integration.
To improve electricity delivery nationwide, the Order exempts transmission and distribution infrastructure such as power transformers, switchgear, control panels, insulated cables, optical fiber cables, and utility poles. These components are essential for expanding the national grid and reducing technical losses.
Advanced metering infrastructure is another key focus of the policy. Electricity meters, metering kiosks, cabinets, and data communication equipment are exempted, a move expected to enhance billing accuracy, reduce electricity theft, and strengthen LEC’s revenue collection.
The Executive Order further provides tax relief on specialized vehicles and construction equipment, including cranes, utility trucks, and operational vehicles. These assets are critical for grid expansion, maintenance, and emergency response.
Spare parts and major maintenance components for generators, turbines, transformers, and engines are also covered. This is expected to reduce downtime, improve reliability, and extend the lifespan of LEC’s infrastructure.
The government emphasized that continued public and government support for LEC depends on the corporation demonstrating commercially viable results. This includes expanding its customer base, stabilizing transmission and distribution systems, and delivering consistent electricity supply.
By stabilizing LEC’s operational costs, the Boakai administration says it aims to accelerate connections to the national grid, support economic activity, and advance national reconstruction and development. Reliable electricity is widely seen as a cornerstone for industrial growth, job creation, and improved public services.
While the Executive Order has been welcomed as a relief measure, analysts note that its success will ultimately be judged by whether electricity tariffs fall, supply becomes more reliable, and LEC improves transparency and efficiency. For now, Executive Order No. 157 represents one of the most comprehensive fiscal interventions in Liberia’s electricity sector under President Boakai’s administration.
