Clash between Libya’s religious and secular authorities regarding the permissibility of surcharging for e-payments

A clash is occurring between Libya’s secular and religious orders as to the permissibility of merchants imposing an extra charge for receiving payments, for goods or services, electronically versus in cash.

The religious view
Last Wednesday (1 April), the Libyan Fatwa House in Tripoli (Dar Al-Ifta) issued a fatwa, or a religious edict (dated 31 March), permitting merchants to increase the price of a good or service when selling it by bank card or certified cheque. However, the higher price charged for e-payment must be agreed upon by both parties.

The fatwa stressed that the bank issuing the card has no right to stipulate to the merchant not to increase the selling price if the bank does not provide liquidity to the merchant when he requests it. The fatwa said that this condition leads to the merchant being cheated and their money being reduced when the merchant wants to convert what is in their account into cash.

Split between religious authorities
It must be pointed out though, that another Libyan religious authority, the General Authority for Endowments and Islamic Affairs, considered imposing a price increase when paying by card to be impermissible according to Islamic law.

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CBL calls on Municipal Guards to curb violations
On the other hand, yesterday, in a leaked letter, the Central Bank of Libya (CBL) called on the Municipal Guard to take urgent measures to curb the violations committed by some business owners, namely the imposition of different prices for goods and services depending on the payment method, whether cash or electronic.

The bank explained that these practices are a clear violation of regulations and constitute exploitation of citizens, in addition to negatively impacting the state’s efforts to expand the use of electronic payment methods and promote financial inclusion.

The CBL stressed the need to take deterrent measures against violators, including the immediate confiscation of point-of-sale (POS) devices from businesses proven to be involved in these practices.

It will be recalled that the CBL had previously issued a circular obliging business owners to use e-payment methods, calling on commercial banks to facilitate procedures and reduce commissions related to electronic services, as part of supporting the transition towards a digital economy.

The Grand Mufti has a history with the CBL
This is not the first time that the Dar il Ifta and the Grand Mufti have intervened in economic or political affairs or criticised the CBL specifically. The Grand Mufti has a rich track record during the 2011 revolution – including some interventions deemed inciteful.

Accuses CBL of usuary
It will be recalled that in November last year, accused the CBL of forcing Libyans into usuary as a result of forcing them to cash their cheques at a discounted rate. This was caused by the CBL changing old currency and providing a ready replacement currency

Mufti objects to CBL’s Certificates of Deposit
In October last year, the Grand Mufti said the ‘‘Absolute Speculative’’ (referred to as Mudaraba in Islamic – Sharia) Certificates of Deposit proposed for sale by the Central Bank of Libya (CBL) are not 100 percent Islamic – Sharia compliant – a ruling that may have wrecked or reduced CBL’s grand plans to solve the cash crisis, defend the value of the Libyan dinar and reduce inflation and cost of living.

Mufti scolds CBL for high dollar FX rate
In February this year, the Grand Mufti criticised the economic situation in Libya. He was critical of the lack of effective action taken by those in power in lessening the economic burden on the average Libyan citizen.

‎Al-Ghiriani said “Every official in Libya should be ashamed of the collapse of the Libyan dinar against foreign currencies and the dollar exchange rate reaching about 7 Libyan dinars’’.

It was expected that the new CBL Governor and his Board of Directors would be more proactive and effective in improving the exchange rate of the Libyan dinar against the main foreign currencies.

The Grand Mufti went to say ‘‘Libyans export one and a half million barrels per day of oil and their (annual state) budget is 170 billion dinars, and yet when the Libyan walks, he walks humiliated, despicable, humiliated, and exchanges the Libyan dinar for half a Tunisian dinar or less’’.

Directing a broadside at Libya’s politicians and administrators, He added ‘‘And after this humiliation, no Libyan official was ashamed (enough) and resigned.”‎

Mufti supports fuel subsidy reform
In July 2025, basing his religious recommendation on Libya’s fuel subsidy reform on the IMF’s study published this month entitled “Energy Subsidy Reform in Libya”., the Grand Mufti said ‘‘the first step to reforming the waste of public money that Libya is currently experiencing is to lift the (energy) subsidies, almost half probably more, of which go to the money of criminals and smugglers’’.‎

‎Drawing on the IMF Al-Ghariani continued ‘‘The report issued by the IMF calling for the lifting of energy subsidies is a study by international experts, the government should take advantage of it and gradually lift subsidies, as the report suggested, as there is no country in the world where gasoline and energy are sold at the price that it is sold at (LD 0.15 / US$ 0.09 per litre) in Libya’’.‎

Mufti supports Presidency Council’s decrees
On the other hand, the Grand Mufti announced in a video recording his support for the Presidency Council’s controversial April 2025 decrees. Some critics deemed the Presidency Council had overstepped its authority.

He rejected those from inside and outside who bypassed them, pointing out that the UN mission does not want to hold elections in Libya.‎

Need for elections
In January this year 2026, during a meeting with the outgoing British Ambassador, Martin Longden, Dar Al-Ifta reported that the Mufti stressed that there is no saviour for Libya except by going to elections by adopting the constitution to end the transitional periods, eliminate financial and administrative corruption, and end the division in the country.

Demanded action not words from international community
The Mufti reportedly asked the active countries of the Security Council to support this option so that Libyan society enjoys stability, and that other loose statements of calling for reconciliation and talking about stability without effective solutions are all slogans that will not bring us to safety.‎

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