The United Nations Secretary-General’s Special Representative for Libya, Hanna Tetteh, briefed the UN Security Council on the situation in Libya regarding the electricity crisis, saying that widespread power outages have exposed problems linked to institutional fragmentation, weak investment, poor coordination of decisions, and resource mismanagement, despite Libya’s substantial energy resources.
Tetteh added that Libya spends around $1 billion per month on fuel imports, yet power plants continue to suffer from shortages of fuel and gas.
Smuggling and Diversion of Subsidized Fuel
She pointed to evidence of large quantities of subsidized fuel intended for electricity generation and security purposes being diverted, considering this a misuse of public resources. She called for investigations and accountability, as well as stronger oversight.
Regarding public spending, she warned that poorly considered increases in salaries and subsidized fuel could undermine fiscal discipline, particularly given salary increases for military and security personnel in eastern Libya and similar demands from the western part of the country.
Regarding the Unified Development Program, she described the framework as an important tool for managing volatile oil revenues, reducing recurrent expenditure, directing surplus revenues toward productive investment, and developing the National Oil Corporation. However, she noted that its full implementation has stalled.
She also called for the concerns raised by the Central Bank of Libya regarding the recent resignation of its governor to be addressed promptly. She urged the Central Bank to resume publishing monthly revenue and expenditure data to strengthen transparency and accountability.
She further called for tighter control over public spending and compliance with the standards of the Unified Development Program, emphasizing the responsibility of the House of Representatives and the High Council of State to oversee implementation of the agreement.
Tetteh also considers the electricity crisis, high spending, subsidized fuel, and pressure on the Central Bank to be symptoms of a broader problem related to governance, institutional division, and mismanagement of public resources. She stressed that unifying institutions and achieving sound financial management are essential for economic stability.
