The Minister of Local Government, Chieftaincy and Religious Affairs, Mr. Mahama Ayariga, announced the release of GH¢9.1 billion to MMDAs, which covers all four quarters of 2025 and the first two quarters of 2026. The funds are for the provision of socioeconomic infrastructure and improved living conditions for Ghanaians. This significant release aims to enhance local governance and decentralization.
Comparing the disbursement under the previous administration in 2024 and the current administration in 2025, Mr. Ayariga noted that MMDAs received GH¢390 million in 2024, whereas in 2025, disbursements surged to over GH¢5 billion, representing a more than twelve-fold increase. This substantial rise in funding enables local assemblies to drive grassroots development effectively.
The Minister cited the Ketu South Municipal Assembly as an example, which received GH¢1.31 million in 2024, but saw its allocations climb to GH¢18.44 million for the first three quarters of 2025, and GH¢21.82 million for Q4 2025 and the first two quarters of 2026 combined. This increase in funding has led to the completion of various projects nationwide.
Nationwide, the increased funds have resulted in the completion of 397 out of 566 targeted CHPS compounds, 502 out of 761 classroom blocks, 3,081 out of 4,029 mechanized boreholes, and 97 out of 134 small-town water systems, alongside major sanitation projects. These projects aim to improve the living conditions of Ghanaians.
Mr. Ayariga reiterated the Government's resolve to advance local government decentralization in line with President John Dramani Mahama's vision of resetting the nation. He assured Ghanaians that the Government is resolute in disbursing not less than 88 percent of the District Assemblies Common Fund to MMDAs, with approximately 80 percent of the funds hitting the accounts of the assemblies.
The Minister also announced that approximately GH¢840 million had been transferred to all MMDAs this year to implement activities in their annual action plans as a result of the District Assemblies Performance Assessment Tool (D-PATs) programme. Additionally, the Ministry has facilitated the release and disbursement of GH¢107 million in consolidated monthly allowances in 2025 and GH¢106 million for 2026 to all assembly members.
Key points
- The Ghanaian government has released GH¢9.1 billion to MMDAs, covering six quarters of the District Assemblies Common Fund (DACF).
- The funds aim to enhance local governance and decentralization, with a focus on socioeconomic infrastructure and improved living conditions.
- The increased funding has led to the completion of various projects nationwide, including CHPS compounds, classroom blocks, mechanized boreholes, and small-town water systems.
