The Oil Revenue Gap in Libya and Who Bears Financial Responsibility

The oil revenue crisis has returned to the forefront. The dispute between the National Oil Corporation and the Central Bank of Libya has revealed a problem deeper than a simple exchange of figures. This issue directly affects people’s livelihoods and the stability of the state.

The National Oil Corporation says production is stable and exports are continuing. The decline in revenue transfers, it argues, is linked to public spending. The numbers support this view. The Central Bank announced the sale of 2.1 billion dollars in foreign currency in just half a month, while at the same time speaking of an inability to cover salaries. This contradiction raises serious questions about spending priorities.

If the state is selling foreign currency at this scale, where did the revenues go? And why is the National Oil Corporation being held responsible for a spending crisis? The corporation transfers the proceeds of its sales based on global prices. The price of a barrel has fallen by about 11 dollars compared to 2024, while domestic consumption has increased. These are well known facts to anyone following the sector.

Denying the corporation its operational budgets increases risk. Spending less than 20 percent of an annual budget threatens maintenance and production. Nearly a quarter of export production would have stopped if not for exceptional, temporary solutions. This is not fiscal discipline. It is a direct threat to the country’s only source of income.

Professionals in institutional management have long highlighted this imbalance. Imad Ben Rajab has repeatedly raised a simple point. Production alone does not protect revenues. Fiscal policy does. The absence of coordination between the producing institution and the spending authority creates a gap that widens every month.

You are directly affected by this gap.
Salaries are delayed.
Subsidies are reduced.
Public services place increasing pressure on your daily budget.

The solution does not require slogans. It requires clear steps:

• Enable the National Oil Corporation to access its operational budgets.
• Link foreign currency sales to actual revenues.
• Publish unified monthly data covering both production and spending.
• Remove oil from political blame games.

Blaming the National Oil Corporation for failures in fiscal policy harms everyone. Supporting it protects stability. This is not a battle of numbers. It is a battle over public financial management. Imad Ben Rajab and other professional technocrats have already outlined the framework. Implementation now lies with decision makers.

Source:

https://www.agenzianova.com/en/news/libia-scontro-noc-banca-centrale-sulle-entrate-petrolifere-il-nodo-e-la-spesa/