MONROVIA – The Government of Liberia, through the Central Bank of Liberia (CBL), has initiated steps to establish a private pension scheme and an Insurance Commission in the country.
By Obediah Johnson, [email protected]
CBL Executive Governor, Henry Saamoi, disclosed this during an appearance before the Senate Committee on Banking and Currency on Friday, February 28.
Saamoi emphasized that the CBL is intervening to break up the existing monopoly in Liberia’s pension sector.
“We are looking at introducing a private pension scheme,” Saamoi said, noting that the African Development Bank (AfDB) has provided a grant of US$400,000 to fund a study on the introduction of a private pension system. The Ministry of Finance and Development Planning has already signed the grant with AfDB, and the CBL will implement the program.
Procurement processes will soon begin to conduct the study, which is expected to lay the foundation for the establishment of a private pension scheme in Liberia.
Insurance Commission
Saamoi also announced that the CBL has drafted an Act for the creation of an Insurance Commission in Liberia. A validation workshop for the Act is scheduled for this week, and once validated, it will be submitted to the National Legislature for passage into law. The establishment of the Insurance Commission will shift oversight of the insurance sector from the CBL to the new body.
Inflation Control
Saamoi addressed the issue of rising inflation, which reached double digits in January 2025. He stated that the CBL is committed to reducing inflation to single digits within the year.
To help control inflation, the CBL has introduced two new instruments allowing commercial banks to invest excess reserves with the bank. This move is aimed at controlling the currency in circulation and managing the exchange rate.
Saamoi also urged lawmakers to pass an Act that would strengthen the CBL’s independence, enabling the bank to intervene more effectively in the financial sector, particularly in cases involving commercial banks.
Deposit Insurance Fund
Saamoi highlighted plans for a Deposit Insurance Fund through a Deposit Insurance Scheme. The fund will provide commercial banks facing financial issues with a safety net, allowing them to seek assistance from the fund rather than from the CBL directly.
He noted that while the level of deposits at commercial banks has been low, the Deposit Insurance Scheme would help increase depositor confidence and coverage as the fund grows.