Libya’s rival eastern and western legislative bodies have signed a U.S.-mediated agreement to unify public spending for the first time in more than a decade, the Central Bank of Libya announced on Saturday.
The deal, described by the central bank as “the first consensus on unified spending across Libya in over 13 years,” was signed by Issa Al‑Arebi, representing the Benghazi‑based House of Representatives, and Abdul Jalil Al‑Shawish, representing the High Council of State in Tripoli. Both sides hailed the agreement as a step toward consolidating fiscal policy and improving the management of public expenditures.
The North African nation has been divided since the 2011 Arab Spring uprising that ousted long‑time ruler Muammar Gaddafi. A United Nations‑recognised government led by Prime Minister Abdulhamid Dbeibah operates from Tripoli, while an eastern administration headquartered in Benghazi is backed by military commander Khalifa Haftar. The split has hindered the formulation of a single state budget and contributed to a foreign‑currency shortfall estimated at $9 billion, despite oil revenues of $22 billion last year – a rise of more than 15 percent over the previous year.
In January, the Central Bank devalued the Libyan dinar by nearly 15 percent for the second time within twelve months, citing the absence of a unified budget among the reasons for the move. The new spending framework is expected to enhance financial stability, the bank added, and it praised the “positive role of the United States in supporting mediation efforts” between the two factions.
Libya holds Africa’s largest oil reserves, estimated at 48.4 billion barrels, and currently produces around 1.5 million barrels per day. The government is aiming to raise output to two million barrels daily, a target that depends on sustained political and economic coordination.
Prime Minister Dbeibah thanked Massad Boulos, a senior adviser to former U.S. President Donald Trump on Arab and African affairs, for “supporting the mediation efforts that led to this agreement.” In a statement, Dbeibah called the pact “a step that carries promising signs,” but warned that the “true test remains the serious commitment of all parties, so that it translates into tangible results for citizens in their daily lives.”
The agreement marks a significant, though tentative, advance toward unifying Libya’s fiscal policy. Continued implementation and adherence by both the Tripoli and Benghazi authorities will be critical to translating the consensus into concrete improvements in public services and economic stability.
