Somali Parliament Approves National Payment System Law

Somalia, 8 November 2025 — The House of the People of Somalia’s Federal Parliament has passed the National Payment System Law, a landmark reform aimed at modernizing the country’s financial infrastructure, improving transparency, and supporting Somalia’s transition toward a fully digital economy. The law, drafted by the Ministry of Finance, was approved during the 12th sitting of the Parliament’s seventh session, chaired by Speaker Sheikh Adan Mohamed Nur ‘Madobe’. Out of 156 members present, 154 voted in favor, signaling strong parliamentary consensus. The new legislation provides a comprehensive framework for managing government payments, ensuring fiscal accountability, and regulating the digital payment ecosystem. It establishes clear legal authority for the Central Bank of Somalia (CBS) to supervise financial transactions, payment service providers, and digital platforms. Finance Minister Bihi Iman Egeh welcomed the Bill’s passage, describing it as a “historic milestone” for Somalia’s financial governance. “This law provides the backbone for financial stability and enables banks and payment institutions to communicate and operate more efficiently,” said Minister Bihi. “It will enable both ordinary citizens and businesses to move their money securely and efficiently, reduce financial risks, and strengthen the role of the Central Bank in oversight and coordination.” He added that the legislation “lays the foundation for a transparent and inclusive financial ecosystem that supports sustainable growth and equal access to financial services.” The law complements the Central Bank’s ongoing financial modernization efforts, including the establishment of the National Payment System (NPS) in 2021 and the recent launch of the Somali Instant Payment System (SIPS) in January this year. These systems integrate commercial banks, mobile wallets, and point-of-sale platforms into a single digital network that enables real-time, 24/7 transactions nationwide. Together, they form the technological core of Somalia’s digital economy — and the new law provides the regulatory foundation to sustain and expand them. The Bill will now proceed to the Upper House for debate and final approval before presidential assent.