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HARGEISA, Somaliland—Civil servants across Somaliland’s government institutions are facing an increasingly dire financial predicament as salary payments continue to be withheld without explanation. More than six weeks since January’s wages first became due, thousands of government employees remain unpaid, with February’s salaries now 11 days overdue. Despite mounting concerns, the government has yet to provide any official justification for the prolonged delays.
The salary crisis unfolds against the backdrop of President Abdirahman Mohamed Abdillahi “Cirro’s” administration’s ambitious fiscal reforms. On January 25, 2025, the president approved a national budget of 3.89 trillion Somaliland Shillings (approximately $406 million USD) for fiscal year 2025, signaling intentions for comprehensive financial restructuring.
In recent testimony before parliament’s oversight committee, Minister of Finance Abdillahi Hassan Adan revealed that discretionary tax exemptions and forgiveness arrangements granted to major businesses have been costing the treasury approximately $40 million annually—nearly 10% of the newly approved budget. In response, President Cirro has issued an immediate directive to end these preferential tax treatments, marking a fundamental shift in the government’s approach to revenue collection.
On February 1, the administration announced sweeping new taxation measures targeting the country’s digital economy. These measures extend to mobile money transactions, digital banking, telecommunications, and utility payments—sectors that have long operated with minimal taxation but now face increased government scrutiny.
While civilian salaries remain unpaid, the administration has prioritized security sector personnel, ensuring uninterrupted payments to military and police forces. In what appears to be a strategic effort to bolster the security establishment, President Cirro has not only maintained timely salary disbursements for the armed forces but has also announced a substantial 50% immediate increase in their wages, with plans to raise them by up to 250% during his term. The reform package requires all security personnel to complete IRIS Biometric Registration by February 2025. Its unclear how the registration effort is progressing or if the armed forces latest payments include the 50% raise.
“Each passing day without payment deepens our hardships,” a senior civil servant told Somaliland Chronicle on condition of anonymity. “We recognize the government’s need to ensure security forces are well-compensated, but civilian institutions are the backbone of government operations. If we are left unpaid indefinitely, essential services will inevitably suffer.”
Compounding the uncertainty, the Bank of Somaliland issued an unprecedented directive on January 30th, freezing all advance payments until July 31st, 2025. Additionally, internal government documents indicate an ongoing civil service restructuring process, at least within the Ministry of Livestock and Rural Development, in coordination with the Civil Service Commission and a private consulting firm identified as PSG.
The silence from the government on the cause of the payment delays raises further questions. While the financial reforms—including ending preferential tax arrangements and implementing new digital economy taxes—may suggest a broader effort to stabilize Somaliland’s economy, the immediate impact on thousands of unpaid civil servants cannot be ignored. Whether the delays stem from liquidity constraints, bureaucratic inefficiencies, or undisclosed fiscal restructuring efforts remains unclear, as officials have so far refrained from offering any public clarification.
Repeated attempts by Somaliland Chronicle to obtain a response from the Ministry of Finance regarding the timeline for resolving the current salary crisis have gone unanswered. Meanwhile, the absence of government communication continues to fuel speculation and anxiety among public sector employees, many of whom now struggle to meet their financial obligations as they await their long-overdue wages.
