JIGJIGA, Ethiopia – In a significant announcement, the President of Ethiopia’s Somali Regional State, Mustafe Mohamed Omar (Cagjar), has declared that the region will be entitled to half of all revenues generated from oil extracted within its territory. The statement was made during a speech commemorating Ethiopia’s National Flag Day.
President Mustafe stated that a definitive 50% revenue share from oil production has been legally guaranteed for the Somali Regional State. The remaining revenue will go to the federal government, to be redistributed nationally through the federal budget as per standard procedure.
The declaration came from Mustafe Mohamed Omar (Cagjar), the sitting President of the Ethiopian Somali Regional State. His tenure has been marked by a focus on regional development and asserting the region’s economic rights.
The announcement was made in the regional capital, Jigjiga, on Monday, October 13, 2025, during celebrations for Ethiopia’s Flag Day.
This announcement clarifies a long-debated issue: the distribution of wealth from natural resources in Ethiopia’s federal system. For the Somali region, which is one of Ethiopia’s largest and most resource-rich, securing a 50% share of potential oil revenues represents a major economic and political victory. It promises greater financial autonomy and the ability to fund development projects directly.
According to President Mustafe, the 50% revenue share has been formally approved by the relevant federal councils and is enshrined in law. However, he used the platform to sharply criticize political opponents, accusing them of misleading the public and pursuing personal political agendas by questioning the agreed-upon resource-sharing plans. He framed the legally-backed agreement as a tangible achievement for the people of the region, contrasting it with what he described as the empty “political and personal interests” of his detractors.
The management of natural resources is a central issue in Ethiopia’s ethnic-based federal system. The Somali region, home to potential oil and gas reserves, has long sought a clear and favorable revenue-sharing formula. President Mustafe’s public declaration seeks to solidify this agreement and present it as a done deal, a testament to his administration’s effectiveness in negotiating with the federal government.
This move not only sets a critical precedent for resource wealth distribution in Ethiopia but also strengthens the president’s political standing by presenting a concrete economic benefit to his constituents. The successful implementation of this revenue share could fundamentally transform the development trajectory of the Ethiopian Somali Regional State.
