23 April 2025: UN and internationals stress the need to address Libya’s economic crisis
This week we look at the latest UNSC briefing and report on Libya, as well as the visit by a US naval ship to Tripoli and Benghazi and the NOC's final bidding round roadshow in Istanbul.
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UN and internationals stress the need to address Libya’s economic crisis in order to make political progress as Tetteh briefs the UNSC and Guterres issues report
Incident: The latest report of the UN Secretary General Antonio Guterres on Libya stressed that ‘Libya continued to be affected by institutional and political divisions, as well as the volatile security and economic situations.’
On 17 April, Guterres’ latest report on Libya was published, dated 11 April, covering the period 5 December 2024 to 4 April 2025. It gave an overview of key political, economic and security developments during the report period. In the observations section of the report, Guterres noted that: ‘More than 14 years after the revolution of 17 February 2011, the aspirations of the Libyan people for a united, stable and democratic country remain unfulfilled. Deep institutional divisions and entrenched political interests are increasingly undermining the political and economic stability and fragile security of Libya, and hindering efforts to achieve national reconciliation.’ He said that the Advisory Committee is a ‘crucial step towards reviving an inclusive Libyan-led and Libyan-owned political process’. He added that the leadership crisis in the High State Council (HSC) continues to prevent it from fulfilling its mandate under the Libyan Political Agreement.
On the economy, Guterres warned that ‘economic instability persisted, despite increased oil production and some efforts by the Central Bank to implement measures to stabilize the financial situation.’ He stressed the importance of reaching an agreement on ‘a balanced, unified budget with strong oversight mechanisms’ so that the revenue and resources of Libya are used in a transparent and equitable manner for the benefit of the Libyan people. He said it is ‘essential to ensure respect for the independence and integrity of oversight institutions’ and noted that the decision to end the crude oil-for-fuel exchange system is an important step in fighting corruption.
On security and human rights, Guterres warned that ‘continued and widespread violations of international law… by security actors across Libya, coupled with the persistent lack of accountability, are deeply concerning’ as are violations against persons deprived of their liberty. He noted that the ‘ongoing violence against migrants in Libya and the tragic discovery of mass graves in the eastern part of the country are reminders of a deeply entrenched system of trafficking in persons, torture and extortion targeting migrants and asylum-seekers.’
In her first briefing to the UN Security Council (UNSC) since taking up her position, Special Representative to the UN SG (SRSG) Hanna Tetteh warned of Libya’s multiple crises and explicitly tied Libya’s political crisis to competition for economic resources.
On 17 April, Tetteh gave a briefing to the UNSC on the situation in Libya. Tetteh highlighted her broad engagements with Libyan and international stakeholders, noting the ‘diverse opinions.’ She said most Libyan leaders ‘call for an inclusive political process and note the urgent need to end unilateral actions, to unify institutions, and restore stability’ . However, she noted that there are differing views on whether a new unified government should be formed first and whether a constitutional framework should precede general elections. She stressed that ‘Political will for compromise is crucial to develop a consensual roadmap resolving Libya’s political crisis and completing the transition.‘
Tetteh said the UN-backed 20-member Advisory Committee is finalising its deliberations and is expected to submit its report proposing options on the way forward by the month-end, barring delays. UNSMIL will assess the options and ‘use them as a foundation for forging consensus on the next steps of the Libyan-led and owned political process.’ She said she intends to ‘maintain an inclusive stakeholder approach, ensuring that any outcome is not only Libyan-owned but also enjoys broader Libyan support’ as well as acting ‘with urgency while exercising caution to preserve stability.’
Tetteh stressed that ‘Libya’s political crisis persists due to competition for economic resources.’ She said: ‘Fragmented institutions, unilateral actions which deepen divisions, and lack of a unified budget exacerbate the situation, causing macroeconomic instability characterized by foreign exchange deficits, inflation, and currency depreciation.’ UNSMIL is ‘engaging economic experts’ and is ‘ready to support the key political stakeholders to agree on a unified budget to prevent a looming crisis.’
Tetteh stressed that ‘the protracted institutional and political divisions, coupled with harmful unilateral actions and the struggle for control of resources by a privileged few, hold the aspirations and needs of the Libyan people captive.’ She warned that ‘overspending of Libya’s vast resources in the absence of an agreed national budget could lead to an economic collapse if not urgently addressed’, despite the fact that the country’s resources could provide adequately for the safety, security and well-being of its citizens. Tetteh said ‘the international community must come together to collaborate on a unified plan to support a democratic state that addresses the Libyan people’s fundamental needs and aspirations, fosters economic growth and equitable development. Inaction will be more detrimental than the cost of change.’
Comment: Tetteh welcomed the NOC’s discontinuation of crude oil-for-fuel transactions from 1 March and encouraged the government to ‘ensure timely funding of fuel imports based on domestic demand.’ She noted that ‘several Libyan stakeholders have suggested conducting an audit of the key Libyan state institutions by one of the top five international audit company. They think this would provide clarity on the management of public finances and help address the lapses and shortcomings of these institutions.’
On municipal elections, Tetteh noted that voter registration for the second phase of local elections in 62 municipalities, including Tripoli, Benghazi, and Sabha, concluded on 15 April. Preliminary figures indicate that over 570,000 voters registered, of which 31 per cent are women. She said that overall, the first phase of municipal elections was successful; however, ‘due to competing spheres of influence in the absence of unified government, in a few municipalities voting results were not respected and winning candidates were replaced by de facto authorities, as occurred in Harawa.’ In other cases, municipal boundaries are being changed during the electoral process or announcement of results is pending due to allegations of interference.
On security, Tetteh stressed that the security situation remains volatile. She highlighted ‘continued military build-up and hostile competition over territorial control, especially among Western armed groups’, stressing that recent armed mobilizations in and around Tripoli have renewed concerns about a potential outbreak of violence in the capital. In the southern region, the ongoing restructuring and consolidation of control of the Libyan National Army forces continues to fuel tensions with local stakeholders. The situation will remain fragile until there is a political will to unify security and military forces under a shared vision.
Tetteh said that armed actors perpetrate human rights violations with impunity. She also said that ‘the recent surge in xenophobic and racist hate speech has been alarming, as it incites violence against migrants, asylum-seekers, refugees, and humanitarian organizations providing lifesaving support.’ The disruption to these groups has obstructed the provision of life-saving support, and so far three people have died as a result. She called for the targeting of humanitarian organizations, migrants, asylum-seekers and refugees to stop.
Tetteh noted that arbitrary detention continues to be prevalent in Libya and that while recent releases in eastern and western Libya are a positive development, hundreds of individuals still languish in illegal detention. She emphasised the urgent need to release all individuals arbitrarily detained without delay. She added that women in Libya face ‘significant challenges and violence without adequate social or legal protection’, calling for the HoR to adopt the draft law on the Protection of Women Against Violence. She also noted that the national reconciliation process has become politicised.
Significance: There seems to be a broad international consensus (at least among the UN and Western countries) on the urgent need to address the worsening economic conditions in Libya, and the erosion of the independence of key economic institutions, in order to create the conditions for a political agreement. The need to rein in the harmful activities of Libyan armed groups and build unified military and security forces also appears to be high on the priority list. It is undoubtedly the case that competition over resources drives much of the political division and security tensions in Libya at present, with the powerful status quo actors not wanting to relinquish control over their various points of access to Libya’s wealth. However, beyond the oft-repeated mantra of needing a unified budget, Tetteh and other internationals have so far offered no indication of a more comprehensive mechanism or roadmap which would facilitate or force progress on this issue. Indeed, there are few signs of any progress on the economic front as it stands.
Instead, in terms of a formal process, the focus remains on the outcomes of the Advisory Committee. However, Tetteh did not provide any further clarity around how UNSMIL intends to convert the recommendations from the AC into a workable political process that has any chance of moving Libya beyond the current quagmire. The focus on building consensus and inclusivity suggests that the issuance of the AC recommendations (whether made public immediately or not) will mark the start of a new round of engagement and shuttle diplomacy around the political process rather than a clear roadmap, with meaningful progress unlikely in the short term. Furthermore, international actors are likely to prioritise engagement (and the application of pressure) around the economic crisis, as well as key geopolitical issues such as migration and security, rather than on the political process.
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USS Mount Whitney docks in Tripoli and Benghazi as US delegation meets key officials to push military cooperation and regional security
Incident: The USS Mount Whitney and the Commander of the US 6th Fleet visited Tripoli and Benghazi this week, meeting with several military and political figures. On 20 April, the USS Mount Whitney - the flagship and command ship of the United States Sixth Fleet- arrived in Tripoli (following a stop in Tunisia). Vice Admiral J.T. Anderson, Commander of the US 6th Fleet, US Special Envoy Richard Norland, and US Chargé d’Affaires Jeremy Berndt met with several key Libyan military and civilian officials in Tripoli, discussing US-Libya security cooperation, regional security, and US support for the unity of Libya. This included meetings with Chief of Defense Staff Muhammed Haddad, PC Deputy Abdullah Lafi, Acting GNU Foreign Minister Taher al-Baour, Deputy Defense Minister Abdussalam Zubi, PM Dabaiba’s National Security Advisor Ibrahim Dabaiba, and Audit Bureau Chairman Khaled Shakshak.
NOC holds final roadshow event in Istanbul as it continues search for foreign investment; NOC tries to strengthen power capacity
Incident: Last week, the National Oil Corporation (NOC) and the GNU Ministry of Oil and Gas (MOOG) held a final bidding round (BR) roadshow event in Istanbul. On 17 April, the acting NOC chairman Masoud Suleiman participated in the Istanbul BR Roadshow, stressing the NOC’s ‘serious desire to build new and promising partnerships between its companies and their counterparts around the world’. During his speech, he noted that the contract terms were carefully designed to ensure a favorable investment climate and mutual benefit. He called on international companies to enter the exploration and drilling sector in the blocks offered for bidding and to work together to meet the growing global demand for oil and gas.
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USS Mount Whitney docks in Tripoli and Benghazi as US delegation meets key officials to push military cooperation and regional security
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