The Minister of Local Government, Chieftaincy and Religious Affairs, Mr. Mahama Ayariga, announced that the government has released GH¢9.1 billion to Metropolitan, Municipal, and District Assemblies (MMDAs) nationwide. This amount covers six quarters of the District Assemblies Common Fund (DACF), specifically all four quarters of 2025 and the first two quarters of 2026. The fund is intended for the provision of socioeconomic infrastructure and improved living conditions for Ghanaians.
Comparing the disbursement under the previous administration in 2024 and the current administration in 2025, Mr. Ayariga noted a significant increase. In 2024, MMDAs received a total of GH¢390 million, whereas in 2025 alone, disbursements surged to over GH¢5 billion, representing a more than twelve-fold increase. This substantial increase in funding gives local assemblies the capacity to drive grassroots development.
The Minister cited the Ketu South Municipal Assembly as an example, where allocations climbed from GH¢1.31 million in 2024 to GH¢18.44 million for the first three quarters of 2025, and GH¢21.82 million for the fourth quarter of 2025 and the first two quarters of 2026 combined. This increase in funding has enabled assemblies to complete various projects, including 397 out of 566 targeted CHPS compounds, 502 out of 761 classroom blocks, and 3,081 out of 4,029 mechanized boreholes.
Nationwide, the increased funds have also completed 97 out of 134 small-town water systems, alongside major sanitation projects. 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 committed to disbursing not less than 88 percent of the District Assemblies Common Fund to MMDAs.
According to Mr. Ayariga, the President announced that 80 percent of the funds must hit the accounts of the assemblies. However, after allocations and calculations, it was found that about 88 percent of the total sum constitutes the Common Fund allocation. With this kind of money, the assemblies have been developing various projects, and every single assembly is awarding new contracts, with contractors moving to sites.
The Ministry has also facilitated the release and disbursement of four trenches in the sum of GH¢107 million in respect of consolidated monthly allowances in 2025 and GH¢106 million for 2026 to all assembly members. This move aims to empower Assembly Members. Additionally, approximately GH¢840 million has 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-PAT) programme.
The D-PAT programme is a system where district assemblies are assessed based on certain criteria. If an Assembly passes the various criteria, it is graded for all the 261 MMDAs under the District Assemblies Common Fund responsiveness factor grant. The Minister said apart from the Common Fund, there is a grant element usually coming from development partners, which is set out with these criteria.
Key points
- The government has released GH¢9.1 billion to MMDAs, covering six quarters of the District Assemblies Common Fund.
- The fund is intended for socioeconomic infrastructure and improved living conditions for Ghanaians.
- The increased funding has enabled assemblies to complete various projects, including CHPS compounds, classroom blocks, and mechanized boreholes.
