The Minister of Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, has said that the government inherited a dysfunctional local governance and decentralisation structures, occasioned by the lack of adequate resources for metropolitan, municipal and district assemblies (MMDAs) to fully discharge their statutory functions.
He said this situation affected service delivery and infrastructure development at the local level across the country.
The minister added that the deep-rooted challenges also included the administration of the District Assemblies Common Fund (DACF).
“The fund was not forthcoming regularly, and less than 50 per cent was transferred directly to MMDAs.
“For nearly seven years under the previous administration, no guidelines were issued for the utilisation of the DACF as required under Section 126 of the Local Governance Act, 2016 (Act 936). “Additionally, the statutory five per cent of the DACF meant for disbursement to MMDAs was capped,” the minister said.
Event
Taking his turn at the Government Accountability series at the Presidency in Accra yesterday, Mr Ibrahim said the government was reversing those challenges by restoring fiscal discipline and ensuring that funds were duly released for projects at the local level.
“The releases have enabled assemblies to undertake critical development projects, including the construction of CHPS compounds, classroom blocks, boreholes and other legacy infrastructure across the country,” he said.
The minister further disclosed that GH¢17 billion was released to MMDAs over the previous eight years (2017- 2024), by the DACF.
He, however, said that the situation improved remarkably in 2025, with a total of GH¢ GH¢6.3 billion disbursed to assemblies across the country.
The minister also said that projected DACF disbursements over the four years under the current administration would exceed the total amount released over the previous eight-year period, underscoring a significant shift in policy direction and commitment to local development.
Performance
Mr Ibrahim said the ministry had conducted the ninth cycle of the District Assemblies Performance Assessment Tool (DPAT) for all 261 MMDAs, under the DACF Responsiveness Factor Grant programme, which had resulted in securing over GH¢800 million to support assemblies in implementing activities captured in their annual action plans.
As part of efforts to stimulate local economic activity, he said the government was advancing the 24-Hour Economy policy through the development of modern market infrastructure.
The ministry, he added, had also taken steps to strengthen traditional governance systems.
Also, in collaboration with the Ministry of Finance, monthly allowances for Paramount Chiefs had been increased from GH¢1,000 to GH¢3,000, while those of Queenmothers had risen from GH¢800 to GH¢2,400, representing an increase of about 300 per cent.
The minister said three-quarters of the payments had already been made, a move he described as unprecedented.
Commitment
Mr Ibrahim reaffirmed the ministry’s commitment to deepening decentralisation and ensuring that local authorities were adequately resourced to deliver improved services and infrastructure to communities across the country.
He said a Legislative Review Committee had been established to facilitate amendments to the Local Governance Act, 2016 (Act 936), in line with ongoing reforms to deepen decentralisation.
The minister said significant gains had also been recorded in infrastructure development under programmes such as the Ghana Secondary Cities Support Programme, which had delivered markets, transport terminals, road networks, drainage systems and street lighting across several municipalities.
On sanitation, he said the ministry had reintroduced the National Sanitation Day and deployed logistics and operational systems to support improved waste management, particularly within the Greater Accra Metropolitan Area.
Social protection interventions had also been expanded, with vulnerable persons benefiting from livelihood support programmes, employment opportunities and financial disbursements under various government initiatives.
Source:
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