By Dr. Ali Said Faqi
Tuesday April 14, 2026
Somalia faces a pivotal moment ahead. The prospect of offshore oil and gas development by the Turkish firm offers a pathway toward economic independence and long-term stability. For a country that has relied heavily on external support, this moment presents a rare opportunity to take control of its economic future. But opportunity alone is not enough. Experience from other resource-rich countries shows that, without strong governance, natural wealth can become a source of instability rather than progress.
At the heart of this issue are two fundamental priorities: environmental impact management and revenue governance. These two pillars will determine whether offshore wealth strengthens the nation or weakens it.
The environmental dimension is immediate and visible. Somalia’s coastline, the longest in Africa, supports thousands of livelihoods through fishing and marine ecosystems. Offshore exploration involves considerable risks that should not be overlooked. Oil spills, even if rare, can have devastating consequences. Similarly, routine operations, including chemical discharges and seismic activity, can gradually affect marine life and coastal economies.
Nations that have robust regulatory frameworks address these risks by implementing rigorous supervision and ongoing evaluation. Somalia, however, is still building its institutional capacity. This makes early preparation critical. Federal and state agencies must boost environmental awareness. In my own experience working across regulatory systems, the absence of early environmental safeguards has often led to costly corrections later.
A practical step forward would be the establishment of a dedicated Department of Environmental Regulation and Assessment, an independent and technically competent body responsible for evaluating, monitoring, and enforcing environmental standards. Without such an institution, environmental protections risk remaining theoretical rather than operational.
The management of financial gains derived from natural resources is equally vital. In many countries, declines in resource wealth are primarily attributable to financial mismanagement rather than insufficient revenue. When transparency and accountability are lacking, officials may misuse funds, increasing corruption and instability.
The experiences of South Sudan and Nigeria illustrate this challenge. In both cases, oil wealth did not translate into broad-based development. Instead, weak institutions and poor oversight contributed to economic imbalances, social tensions, and environmental damage. These examples are not arguments against resource development but reminders that regulatory systems must advance in step with resource development.
Somalia has the advantage of starting early. There is a chance to create transparent, accountable systems before large-scale revenue starts. This includes clear legal frameworks, independent oversight mechanisms, public disclosure of revenues and expenditures, and strong auditing systems. It is also advisable to create a sovereign wealth framework, which can help safeguard the interests of future generations and address fluctuations in the economy.
Strong legal and contractual frameworks help ensure fair agreements and protect national interests. Clear resource-sharing mechanisms between federal and regional authorities are needed to avoid conflicts and preserve unity.
Managing environmental risk and managing revenue are not separate challenges. They are interconnected responsibilities that require the same foundation: strong institutions, transparency, and disciplined leadership.
This is a governance test. It is a test of whether Somalia can move beyond short-term thinking and build systems that serve the national interest over time. Natural resources do not build nations on their own. Institutions do.
This op-ed is not a political statement. It is a technical and policy-based reflection grounded in environmental science, regulatory experience, and a commitment to sustainable national development.
If Somalia manages its resources effectively, enforces environmental regulations, and ensures transparent revenue practices, it can build enduring prosperity for its population.
The views expressed in this article are the author’s own and do not necessarily reflect Hiiraan Online’s editorial stance.
