The Ghanaian government paid GHS 107 million in allowances to 9,085 Assembly Members across the country in 2025. This exceeded the GHS 100 million initially committed in the 2025 budget for the initiative. Ahmed Ibrahim, the Minister for Local Government, Chieftaincy and Religious Affairs, disclosed this information.
The payments were a fulfilment of President John Dramani Mahama's promise to provide financial support for Assembly Members. This initiative aims to strengthen local governance and help these members effectively carry out their duties. The beneficiaries include 6,272 elected Assembly Members and 2,813 government-appointed members.
This expenditure reflects the government's ongoing investment in strengthening local administration structures. Reliable financial support for Assembly Members can improve their capacity to deliver local services and represent their constituents. The consistent allocation of funds highlights a sustained effort to enhance decentralisation, a key aspect of Ghana's political and administrative reforms. Previous administrations have also sought to empower local government officials.
Minister Ibrahim addressed Parliament's Assurances Committee on Thursday. He stated, "The President promised GH¢100 million in the 2025 Budget. By 31st December 2025, the President had paid GH¢107 million to all Assembly Members in the country." This statement confirmed the commitment and the amount disbursed.
Each Assembly Member is entitled to a monthly allowance of GHS 1,300. This is paid quarterly through the country's 261 Metropolitan, Municipal, and District Assemblies (MMDAs). The minister explained that his ministry has streamlined the payment process. This ensures funds are quickly transferred to MMDAs once released by the Ministry of Finance. For example, he stated that the first-quarter allowance for 2026 was released and directed to assemblies for immediate payment. The direct transfer mechanism prevents unnecessary delays in getting money to the recipients.
Concerns about tax deductions from these allowances were also addressed. The minister confirmed that despite appeals for tax-free allowances, the government is legally obligated to apply existing tax laws. This adherence to tax regulations ensures fairness across various public payments. This situation highlights the balance between providing support and maintaining fiscal integrity.
This financial commitment demonstrates the government's dedication to improving the operational effectiveness of local governance. Timely allowance payments can incentivise greater participation in local government activities. Moving forward, the regularity of these payments and their impact on local development will be closely monitored. Analysts will look for how these funds translate into tangible improvements in community services and local accountability. Decision-makers will be watching how this policy affects the overall efficiency of MMDAs.