Libya central bank governor Naji Issa resigns amid political tensions

Libya's Central Bank Governor Naji Issa has resigned without giving a reason, according to reports. Issa was appointed in September 2024 as part of a UN-backed deal aimed at resolving a dispute over the central bank and Libya's oil revenues. His resignation comes as Libya remains divided between rival administrations in the west and east. The central bank has previously been at the centre of political tensions, while disputes over control of oil revenues have repeatedly disrupted production and exports. Authorities have not yet announced who will replace Issa.

Libya's Central Bank Governor, Naji Issa, has resigned from his position without giving a reason, according to several reports.
Issa reportedly confirmed his resignation to private television channel Al-Ahrar on Monday. Libya's parliament, based in the country's east, appointed Issa and Deputy Governor Miree al-Barasee in September 2024 as part of a United Nations-backed agreement aimed at ending a dispute over the central bank, oil revenues and the country's worsening financial crisis.

RESIGNATION COMES AMID POLITICAL DIVISION

Issa's departure comes as Libya continues to struggle with the consequences of years of political instability and armed conflict.
The country has remained divided between the UN-recognised government of Prime Minister Abdulhamid Dbeibah in western Libya and a rival eastern administration backed by military commander Khalifa Haftar.
The central bank has frequently been caught in the middle of the country's political divisions because it controls state revenues, including billions of dollars generated from oil exports.

PREVIOUS GOVERNOR'S REMOVAL TRIGGERED OIL CRISIS

Issa succeeded Seddik al-Kabir, who was removed from his position by authorities in Tripoli in August 2024 after years of criticism over his management of the central bank and state finances.
Officials close to Dbeibah's administration accused Kabir of favouring the rival eastern authorities, allegations he rejected.
His removal triggered a major confrontation with the eastern-based administration. In response, authorities in the east declared force majeure, leading to the suspension of oil production and exports.
Libya's oil production subsequently fell by about half to roughly 600,000 barrels per day, according to the state-run National Oil Corporation.

OIL REMAINS AT THE CENTRE OF THE DISPUTE

Oil is the backbone of Libya's economy, providing the vast majority of government revenue.
Much of the country's oil production is concentrated in eastern and southern regions, many of which are controlled by forces loyal to Haftar. This gives the eastern power structure significant leverage over the country's finances despite the central bank and other key state institutions being based in Tripoli.
The repeated disputes over control of oil revenues have therefore had consequences far beyond the banking sector, affecting government spending, public salaries and economic stability.

UN-BACKED DEAL BROUGHT TEMPORARY STABILITY

Issa's appointment in September 2024 was part of an agreement supported by the United Nations that sought to resolve the central bank dispute and prevent further disruption to Libya's oil industry.
The agreement temporarily eased tensions and allowed the bank to resume functioning under a new leadership structure.
However, Libya's underlying political divisions have remained unresolved, leaving key national institutions vulnerable to renewed disputes between rival authorities.

PARLIAMENT YET TO COMMENT

Libya's eastern-based parliament had not immediately commented on Issa's resignation.
No official explanation was given for his decision to step down, and it remains unclear who will succeed him or whether his departure could trigger another dispute over control of the central bank.
His resignation could therefore test the fragile political arrangement that has kept Libya's financial institutions functioning since the 2024 crisis.

LIBYA'S LONG ROAD TO STABILITY

Libya has struggled to establish stable national institutions since the 2011 NATO-backed uprising that ended Muammar Gaddafi's four-decade rule.
The country has since experienced rival governments, armed clashes and repeated political disputes over control of state institutions and natural resources.
The resignation of the central bank governor adds another layer of uncertainty to an already fragile political and economic environment, particularly because control over oil revenues remains one of the most sensitive issues dividing Libya's rival factions.