On Saturday, the Presidential Council-designated Central Bank of Libya (CBL), announced an exceptional budget allocation of 5.416 billion Libyan dinars to the National Oil Corporation (NOC).
This funding, provided from January through August 2023, aims to support the country’s oil sector, which remains the backbone of Libya’s economy. The allocation is critical for maintaining and boosting oil production, ensuring the operation of key infrastructure, and securing Libya’s main source of revenue amid ongoing challenges.
The NOC’s role is vital to the national economy, with oil revenues accounting for over 90% of Libya’s income. However, the sector has faced repeated disruptions, including blockades by armed groups and damaged infrastructure, leading to fluctuating oil output.
This exceptional budget is seen as a necessary step to stabilize production and maintain the sector’s operations, as Libya looks to overcome the broader economic struggles caused by political instability and years of conflict.
In addition to the funds directed toward the oil sector, the Central Bank’s financial report highlighted significant spending in other areas.
The General Electricity Company of Libya (GECOL) received 4.974 billion dinars to address its pressing infrastructure issues, including frequent power outages that have plagued the country.
Other key allocations include 517.66 million dinars for the Martyrs and Missing Persons Families Care Authority, 160.92 million dinars for the General Authority for Awqaf and Religious Affairs, and 22.03 million dinars for the General Telecommunications Authority.
The overall public spending in Libya from January to August 2023 amounted to 59.5 billion dinars. A large portion of this—39.9 billion dinars—was dedicated to public sector salaries, underlining the ongoing strain on the country’s financial resources.
With so much of the budget directed towards wages, there is limited flexibility for critical infrastructure investments, further complicating efforts to restore stability.
