Equatorial Guinea is strengthening the collection and oversight of non-hydrocarbon revenues as declining income from oil and gas puts growing pressure on public finances.
On August 14, 2026, the government approved measures aimed at improving the collection, monitoring and traceability of revenue generated by public administrations, autonomous agencies and state-owned entities. The objective is to bring more public cash flows into the formal budget system and limit revenue losses as the country’s traditional hydrocarbon revenue base contracts.
The decision forms part of a broader fiscal adjustment already underway. Under its IMF staff-monitored program, Equatorial Guinea has committed to improving domestic non-hydrocarbon revenue collection as a key step toward stabilizing public finances. The World Bank has also linked the deterioration of the country’s fiscal and external balances to declining hydrocarbon production and export earnings.
Replacing part of the lost hydrocarbon revenue
The government is continuing to expand the coverage of the Treasury Single Account and strengthen its oversight of autonomous public entities and state-owned companies. The authorities are also seeking to raise domestic tax revenue and increase income from electricity and other non-hydrocarbon activities.
At the same time, they are working to improve the recording and transfer of non-tax revenue generated by gas-related services. The African Development Bank has identified gas monetization and associated services as potential sources of additional public revenue, provided that contracts, billing and transfers are properly recorded in government accounts.
Such revenue does not represent diversification away from hydrocarbons. However, more transparent accounting can ensure that a larger share of the revenue generated by the gas sector reaches the state budget.
As hydrocarbon income declines, non-hydrocarbon revenue must carry a greater share of the fiscal burden. The government wants these domestic resources to become a more reliable source of funding for public investment and essential public services.
Tighter control over public entities and customs
The latest measures are also expected to strengthen customs oversight and improve financial reporting by state-owned and autonomous public entities. Better monitoring of import declarations and tighter control over customs exemptions could help reduce revenue losses and ensure that legally owed duties are collected.
State-owned companies, including those operating in electricity and services connected to the hydrocarbon industry, are also expected to face stronger reporting requirements. Standardized revenue statements submitted to the Ministry of Finance would allow the authorities to compare collections, transfers and reported activity more systematically.
These steps build on reforms introduced in previous years. Equatorial Guinea adopted a new General Tax Law in November 2024 and has since continued working to improve taxpayer identification, streamline preferential tax regimes and strengthen domestic revenue administration.
A shrinking hydrocarbon base
The fiscal adjustment is taking place against a structural change in Equatorial Guinea’s energy economy. Hydrocarbon production and export earnings have declined, weakening the revenue base that has traditionally supported the country’s public finances.
The latest measures therefore represent more than an administrative effort to improve tax collection. They are part of an attempt to ensure that a larger share of the revenue due to the state is properly recorded and collected, while reducing the country’s fiscal dependence on oil and gas.
For the government, the fiscal imperative is increasingly clear: as hydrocarbons contribute less to the budget, a larger share of the country’s non-hydrocarbon economic activity must translate into dependable public revenue.
