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Somaliland President Abdirahman Mohamed Abdillahi Cirro has issued a directive mandating all government ministries and agencies to transfer their collected revenue to the Ministry of Finance in a bid to enhance financial transparency and accountability. The announcement was made during a cabinet meeting in Hargeisa, where President Cirro underscored the importance of ensuring proper financial procedures and eliminating mismanagement within revenue-collecting entities.
In his address, President Cirro emphasized that revenue-generating bodies should not be allowed to directly spend the funds they collect. Instead, all revenues must be transferred to the Ministry of Finance, which will oversee the disbursement of funds in accordance with approved budget permits. The president highlighted that such measures are essential for curbing financial mismanagement and ensuring that public funds are used efficiently for national development. He commended the Ministry of Aviation for its leadership in adopting the new revenue transfer system and called on other government entities to follow suit without delay.
The president’s directive also includes a strict warning against unauthorized spending, urging all ministries and agencies to operate within the framework of the approved national budget. He reiterated that financial discipline is crucial to maintaining public trust and achieving sustainable economic growth. President Cirro’s administration has placed a strong emphasis on fiscal responsibility, and this latest move aligns with broader efforts to streamline financial operations and enhance the efficiency of public service delivery.
In addition to the revenue management directive, President Cirro announced the immediate suspension of illegal tax exemptions that were previously granted to companies without proper authorization. The Ministry of Finance has been tasked with enforcing this new policy, ensuring that all businesses comply with Somaliland’s tax regulations. The government aims to eliminate loopholes that have allowed certain entities to evade their financial obligations, ultimately strengthening the nation’s fiscal capacity and improving public service funding.
President Cirro also revealed plans for a comprehensive mid-year financial review to evaluate the effectiveness of the new revenue management system and consider potential adjustments. This review will provide an opportunity to assess progress, identify challenges, and make necessary improvements to ensure long-term financial stability. The president stressed that a robust financial system is essential for achieving Somaliland’s development objectives and fostering investor confidence.
Recognizing the importance of international partnerships, President Cirro emphasized the need to build strong relationships with the global community to secure financial assistance and development support. He highlighted the critical role of transparency and accountability in attracting foreign aid and investment, noting that a well-managed financial system will position Somaliland as a reliable partner in regional and global economic initiatives.
The directive has been welcomed by financial experts and government officials who see it as a crucial step toward improving governance and reducing financial irregularities. By centralizing revenue management under the Ministry of Finance, the government aims to enhance oversight, reduce corruption, and allocate resources more effectively to key sectors such as healthcare, education, and infrastructure development.
President Cirro’s leadership in implementing these financial reforms reflects his administration’s commitment to good governance and economic progress. As Somaliland continues to navigate complex economic challenges, the focus on transparency and accountability is expected to yield long-term benefits for the country and its citizens. The government remains dedicated to ensuring that all revenue collected is used to support national development priorities and improve the quality of life for the people of Somaliland.
As the new revenue management policies take effect, stakeholders, including business leaders and civil society organizations, are encouraged to support the government’s efforts to promote fiscal responsibility and economic growth. Ensuring compliance with these new measures will be crucial in achieving Somaliland’s vision of financial stability and sustainable development.