The Minister of Local Government, Chieftaincy and Religious Affairs, Honourable Mahama Ayariga, has disclosed plans to allocate more local government resources to traditional councils to strengthen their role in community development and chieftaincy dispute resolution. Honourable Ayariga explained that the proposal is part of efforts to recognise the social and administrative support chiefs provide to Metropolitan, Municipal and District Assemblies.
Speaking at the Government Accountability Series, the Minister of Local Government noted that President John Dramani Mahama has directed him and the Finance Minister to explore additional funding for the National and Regional Houses of Chiefs. He explained that improved financial support would help the institutions resolve chieftaincy disputes more quickly before they escalate into complex national security challenges.
Honourable Ayariga further outlined plans to create space within the funding arrangements of local government authorities to support traditional councils. He argued that chiefs play an important role in securing public acceptance for development projects and facilitating cooperation between local authorities and communities.
“It is only fair that when we also get huge amounts of Common Fund money, that a little bit is also given to the traditional councils to facilitate their work of maintaining that social capital which we leverage on to run the cities and the municipalities and the towns and villages.”
Honourable Mahama Ayariga
The Minister pointed to the involvement of chiefs in decisions concerning the location of schools, markets and health facilities as evidence of their importance to local governance. He explained that Metropolitan, Municipal and District Chief Executives often depend on traditional authorities to build community support for development projects.
Meanwhile, Honourable Ayariga disclosed that the government has already increased the monthly allowances paid to paramount chiefs and queen mothers under President Mahama’s administration. He noted that the payments to paramount chiefs and Queen mothers have risen to about GH¢3,000 and that six quarters had already been paid since the government assumed office.
Beyond financial support, the Minister linked the proposed intervention to the objective of strengthening decentralisation. He argued that traditional councils possess social capital which local authorities continue to rely on when implementing policies and delivering services within communities.
Honourable Ayariga therefore indicated that the government intends to incorporate support for traditional institutions into its local government financing arrangements. He emphasised that strengthening the chieftaincy institution would complement the work of local assemblies and contribute to more effective administration at the community level.
Government Reports GH¢9.1 Billion Common Fund Transfers to MMDAs
The Minister of Local Government, Chieftaincy and Religious Affairs, Honourable Mahama Ayariga, also disclosed that GH¢9.1 billion has been transferred to the District Assemblies Common Fund for distribution to Metropolitan, Municipal and District Assemblies. He explained that the transfers cover four quarters of 2025 and the first two quarters of 2026 as part of the government’s decentralisation agenda.
Honourable Ayariga indicated that the funds were transferred by the Ministry of Finance to the Common Fund Administrator for onward disbursement to the various assemblies. He noted that the resources are intended to support socio-economic infrastructure and improve living conditions within communities.
The Minister of Local Government used the figures to highlight what he described as a significant increase in direct financial support for local authorities. He compared the GH¢390 million reportedly disbursed to MMDAs in 2024 with the GH¢5 billion transferred during 2025 under the current administration.
According to Honourable Ayariga, the 2025 figure represented more than twelve times the amount he attributed to the previous year. He presented the comparison as evidence of the government’s commitment to the principle of “funds follow functions” and its objective of giving local authorities greater capacity to perform their responsibilities.
The Minister also cited Keta South as an example of the change in funding levels. He noted that the assembly received GH¢1.3 million in 2024, compared with GH¢18.44 million during the first three quarters of 2025.
Honourable Ayariga further disclosed that Keta South received GH¢27.02 million covering the final quarter of 2025 and the first two quarters of 2026. He argued that the figures demonstrate the scale of resources being channelled towards local authorities to support development at the district level.
Turning to the broader decentralisation framework, the Minister noted that the government had reviewed and launched the National Urban Policy 2026–2035 and the National Slum Upgrading and Prevention Strategy 2026–2035. Cabinet has also approved the National Decentralization Policy and Strategy for 2026–2030, which is expected to be launched and disseminated.
Honourable Ayariga stressed that increased funding must translate into effective service delivery at the local level. He indicated that the government’s approach is intended to ensure that resources follow the functions assigned to assemblies and enable them to respond more effectively to development needs.
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