Freetown: Members of Parliament have approved the FY 2026 Supplementary Budget presented by the Minister of Finance, Sheku Ahmed Fantamadi Bangura, as Sierra Leone confronts the economic fallout of surging global oil prices and the Middle East conflict.
According to Sierra Leone News Agency, the supplementary budget, themed ‘Strengthening Budget Credibility to Safeguard Macroeconomic Stability and Protect Livelihoods of Citizens,’ was necessary to revise the original fiscal framework and preserve stability amid mounting pressures. Minister Bangura noted that since March 2026, international oil prices have risen above the earlier projection of US$70 per barrel, weakening growth prospects, raising inflation, and worsening the terms of trade. He added that rising global oil prices triggered higher government expenditure, including the introduction of fuel subsidies in April 2026 and increased energy subsidies to the Electricity Distribution and Supply Authority (EDSA) to pay Independent Power Producers.
He fur
ther informed Parliament that revenue shortfalls recorded in the first half of the year are expected to persist, reflecting reduced demand for petroleum products and slowing economic activity. ‘To offset recurrent expenditure, the government must rationalise the domestic capital budget to the updated Public Investment Programme aligned with the revised capital spending envelope’, he added. The Minister of Finance stressed that the adjustments are designed to safeguard budget credibility, maintain macroeconomic stability, and protect citizens’ livelihoods during a period of global uncertainty.
He highlighted that Sierra Leone entered 2026 with strong fundamentals, having achieved macroeconomic stability in 2025 through prudent fiscal and monetary policies. Economic growth reached 4.8% in 2025, surpassing projections and the Sub-Saharan Africa average. This performance, he explained, was driven by increased agricultural output under the Feed Salone Programme, higher iron ore production, and expansion in manufa
cturing and services. Inflation also fell sharply, dropping to 4.4% in December 2025 from 13.8% a year earlier and 52.2% in 2023.
Tight monetary policy, fiscal consolidation, a stable exchange rate, and easing global food and oil prices all contributed to this remarkable turnaround. Members of both the ruling SLPP and opposition APC commended the Minister of Finance and his team for stabilising the economy through sound policies and reform measures. They, however, stressed the need to improve domestic revenue mobilisation and ensure prudent expenditure management.
The supplementary budget, approved by Parliament, is positioned as a corrective measure to preserve fiscal credibility and shield Sierra Leoneans from the adverse effects of the ongoing crisis, while building on the hard-won economic gains of recent years.