By Mohamed Abdi - Reporter
Somalia, 25 April 2026 Galmudug Vice President Ali Dahir Eid urged review of the June 2018 Baidoa resource-sharing deal, terming it outdated as Somalia nears oil production.
Speaking at an event on resource sharing in Mogadishu Friday, Eid said the Baidoa deal splits oil revenue: 30 per cent to the federal government, 30 per cent to producing state, 20 per cent to the local district, and 20 per cent to states with no resources.
“We do not yet have a better framework than the current one, but we believe it should be revisited, updated, and expanded,” he said, highlighting growing calls for reform of the revenue-sharing model.
The Vice President also pointed to historical challenges in Somalia’s oil sector, noting that past governments faced external pressure and skepticism about the country’s readiness to develop its petroleum resources.
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“For a long time, Somalia’s oil was considered a reserve that could not be exploited. There were even times when officials were pressured to halt petroleum activities. Today, we have reached a new stage,” he said.
Somalia’s oil sector has regained attention as the federal government advances exploration plans and legal frameworks aimed at attracting international investment.
The Baidoa agreement remains a key pillar of resource governance, but growing political debate suggests it may be subject to renegotiation as Somalia moves toward potential production.