Federal Government and Member States Institutions Coordination in the Somalia Petroleum Sector Management

Abstract

Somalia’s petroleum sector has regained strategic importance due to renewed exploration activities and growing international interest. Despite significant oil and gas potential, effective development of the sector remains constrained by prolonged conflict, fragile institutions, and unresolved federal governance arrangements. This study examines institutional challenges affecting cooperation between the Federal Government of Somalia (FGS) and Federal Member States (FMS) in managing petroleum resources. The study examines the institutional and legal challenges affecting cooperation between the FGS and FMS petroleum ministries, with a focus on the upstream oil and gas sector across the project lifecycle. Drawing on constitutional analysis, sector legislation, and comparative federal experiences from Nigeria and Iraq, the research assesses the suitability of Somalia’s federal system for managing high-value extractive resources in a post-conflict context. The findings indicate that while Somalia’s legal framework recognises shared ownership of natural resources and promotes cooperative federalism, weak implementation mechanisms, political mistrust, and limited institutional capacity undermine effective coordination. The study concludes that clarifying constitutional mandates, operationalising fiscal federalism, and reinforcing joint FGS AND FMS institutions are essential to ensuring transparent, equitable, and sustainable petroleum sector development.