Libya’s Presidential Council has announced plans to investigate and audit major contracts in the country’s oil and electricity sectors following years of heavy spending with little progress.
The media office of Presidential Council Head, Mr. Mohammed Menfi, said the move is part of his work as chairman of the High Financial Committee. Menfi is expected to issue a formal decision to create a special technical team that will inspect and review all major contracts in the two key sectors.
According to the announcement, the new committee will work closely with Libya’s local oversight and auditing bodies and will also maintain direct communication with the United Nations Security Council Sanctions Committee under Resolution 1970 of 2011. This resolution, passed during the early days of Libya’s 2011 crisis, gives the UN a role in monitoring certain economic and financial activities in the country.
Officials say the decision comes after billions of dinars have been allocated to the oil and electricity sectors in recent years, yet there have been no clear improvements in services or output. The Presidential Council’s media office noted that the electricity network still suffers frequent breakdowns, especially during peak demand seasons, while oil production has not seen any significant boost despite large investments.
Central Bank of Libya figures show that between 2023 and 2024, the state-owned National Oil Corporation spent a total of 24.2 billion Libyan dinars under the “exceptional financial arrangements” budget line. In the same period, the state electricity company received 10.3 billion dinars for its operations and projects.
Menfi’s proposed committee will focus on several key issues. One is to review how money has been spent in past and ongoing projects, checking if contractors have delivered on their obligations. Another is to create clear legal and technical standards for future contracts, particularly in exploration projects and the development of oil and gas fields that are put up for public tender.
The committee is also expected to study how projects are awarded, making sure that bidding processes are transparent and follow international best practices. According to officials, the aim is to prevent waste, ensure value for money, and restore public confidence in the way Libya’s natural resources are managed.
Libya’s oil sector is the backbone of its economy, accounting for the majority of government revenue and export earnings. However, political instability, armed conflict, and governance issues have repeatedly disrupted production and investment. The electricity sector has faced similar challenges, with old infrastructure, poor maintenance, and alleged mismanagement leaving many parts of the country with regular blackouts.
By linking the audit to the UN Sanctions Committee, Menfi’s team is signaling an intention to operate with international oversight and ensure that findings can be used to improve governance in both sectors.
Economic analysts say the move could help Libya address long-standing inefficiencies, but warn that the success of the plan will depend on the committee’s independence, the cooperation of key institutions, and the political will to act on its recommendations. They note that in the past, similar investigations have been announced but later stalled due to political rivalries and lack of follow-through.
For ordinary Libyans, the stakes are high. Oil revenues fund public salaries, infrastructure projects, and social services, while electricity shortages have disrupted businesses, schools, and hospitals. Many citizens are hoping that this new push for transparency will finally lead to reliable power supply and sustainable growth in oil production.
The Presidential Council has not yet released the names of the members who will serve on the technical committee, but officials say the selection will prioritise expertise in auditing, engineering, contract law, and oil and gas operations.
If implemented effectively, the audit could become one of the most significant steps Libya has taken in recent years to reform its resource management and rebuild trust between the government and the people.
