Libya’s National Oil Corporation Accuses Central Bank of Withholding Approved Budgets

NOC Accuses Central Bank of Withholding Funds

In an unusual move, Libya’s National Oil Corporation has openly complained that the Central Bank of Libya is retaining the budgets approved by the government. Such public criticism between state institutions is rare, but the NOC has taken this step in its latest statement.

The accusation appears in the NOC’s statement addressing a media controversy over a discrepancy in reported oil revenues up to 13 October. Libya’s economy depends heavily on oil output, making the dispute particularly significant.

Discrepancy in Reported Oil Revenues

The Central Bank of Libya says it has received only about 361 million US dollars from the NOC. In contrast, the NOC insists that, as of 13 October 2026, it transferred a total of 1,231,631,354.16 US dollars to the Libyan Foreign Bank, which is an affiliate of the Central Bank.

Using the clarification statement on this discrepancy, the NOC declared: ‘the Central Bank has withheld the budgets approved by the government, failing to release them to the Corporation. This has hindered the implementation of the Corporation’s plans and programmes, including the fulfilment of financial obligations within the oil sector, the maintenance of production stability, and the execution of development and maintenance projects’.

The NOC explains that the referenced obligations comprise debts owed to international oil service companies and the shares due to producing partners. Many of these creditors have not been paid for months – some for nearly a year – and the NOC attributes the delay to the Central Bank’s failure to release foreign currency funds.

Impact on International Partners

International partners and service providers have been assured they will be paid ‘soon’. This leaves them in a dilemma: most continue operating, but it is unclear how long they can sustain work without payment flows. Pressure is mounting as many service providers may soon face difficult decisions about whether to cease operations, while headquarters urge Libyan branches to secure payments, a task the NOC says is hampered by the Central Bank’s control over funds.

If some international companies do halt their activities, Libya’s oil production and revenues could suffer negatively. This outcome is undesirable for both parties, but it remains a possibility. Given that the firms involved are among the world’s leading oil service providers, any withdrawal would represent a substantial loss for the NOC and for Libya.