Government releases GH¢9.1b covering six quarters of DACF to MMDAs – Ayariga

Ghana's Minister of Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, has announced the release of GH¢9.1 billion over six quarters to cover the District Assemblies Common Fund (DACF) for Metropolitan, Municipal, and District Assemblies (MMDAs) across the country. This significant financial boost, covering the entirety of 2025 and the initial two quarters of 2026, aims to provide essential socioeconomic infrastructure and improved living conditions for the Ghanaian populace.

When compared to the previous administration's disbursement in 2024, where MMDAs received a total of GH¢390 million, the current administration's allocation has surged to over GH¢5 billion for the same period in 2025, marking a more than twelve-fold increase. At the Ketu South Municipal Assembly, for instance, allocations have escalated from GH¢1.31 million in 2024 to an impressive GH¢21.82 million for Q4 2025 and Q1 2026 combined.

This substantial financial injection enables local assemblies to make notable strides in grassroots development, as evidenced by the completion of key projects nationwide. These include the construction of 397 out of 566 targeted Community Health Planning and Service (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. Moreover, major sanitation projects have also benefited from the increased funds.

Mr Ayariga reiterated the government's commitment to advancing local government decentralisation, in line with President John Dramani Mahama's vision of resetting the nation. He assured Ghanaians that the government under President Mahama is resolute in disbursing at least 88 per cent of the DACF to MMDAs. President Mahama's directive ensures that 80 per cent of the funds must directly reach the assembly accounts, with the actual disbursement amounting to about 88 per cent of the total Common Fund allocation.

Under the incumbent administration, local assemblies have been actively developing numerous projects, with contractors moving to various sites to commence works. The government has also successfully conducted the night cycle of the District Assemblies Performance Assessment Tool (D-PATs), a system that assesses assemblies based on certain criteria. Assemblies that successfully meet these criteria are graded, and additional funds are allocated as a motivational incentive.

Furthermore, approximately GH¢840 million has been transferred to all MMDAs this year to implement activities outlined in their annual action plans as part of the D-PAT programme. In a pioneering move for local governance and decentralisation, the Ministry for the first time facilitated the release and disbursement of four trenches, totalling GH¢107 million in consolidated monthly allowances for Assembly Members in 2025 and GH¢106 million for 2026. These funds are set to be transferred to assembly members' accounts in the near future.