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Libya’s long-running political and economic divisions have entered a new phase of tension after Osama Hammad, prime minister of the eastern-based government appointed by the House of Representatives, ordered a total ban on sharing financial and banking data with the Tripoli authorities. The decision, which was made public this week, specifically blocks the transfer of information about state employees’ salaries and payroll records, sparking concern among thousands of civil servants in the east who now fear delays or complete stoppages in their wages.
The move comes amid an ongoing power struggle between the Government of National Unity (GNU) in Tripoli, led by Abdul Hamid Dbeibah, and the eastern administration, which is backed by parliament and based in Benghazi. The Dbeibah government has accused the Hammad administration of using salaries as a political tool to pressure its rivals. The tension escalated after Tripoli rolled out the Your Instant Salary system — a new digital payroll management platform designed to modernise salary processing and reduce corruption.
The system requires accurate and up-to-date data from all state institutions across Libya. However, without the eastern government’s cooperation, the platform will not have complete records for employees under its jurisdiction, creating uncertainty over how quickly salaries can be processed and paid.
In defending the decision, the Hammad government said the data blockade is necessary to protect sensitive financial information from being misused for political purposes. A statement from his office emphasised that “safeguarding financial data is a matter of national security” and warned that any institution or official who violates the order will face legal and administrative consequences.
Analysts say the dispute could have serious consequences for Libya’s already fragile economy. The country has been politically divided since 2014, with separate administrations in the east and west, each controlling its own institutions and security forces. While both sides have relied heavily on oil revenues — the backbone of Libya’s economy — the lack of unified financial systems has repeatedly caused delays in budget approval and disruptions in public services.
Economic observers fear the current salary data dispute could paralyse the implementation of the national budget, disrupt public sector payments, and deepen mistrust between rival authorities. The division also risks further alienating ordinary citizens, many of whom are already struggling with rising living costs, a weakened dinar, and shortages of essential goods.
A Tripoli-based economic expert told local media that the Your Instant Salary system was intended to increase transparency by ensuring that salaries go directly to eligible workers without ghost employees or double payments. “If eastern authorities refuse to cooperate, thousands of workers could be caught in the crossfire of politics,” he said.
For now, the stalemate shows no sign of easing. Neither Dbeibah nor Hammad has indicated any willingness to compromise on the matter, and Libya’s central institutions remain split along political lines. With both sides standing firm, the salary data crisis could become the latest flashpoint in the country’s long struggle to establish a unified government and a functioning national economy.
