“𝗗𝗼 𝗦𝗲𝗲 𝘁𝗵𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗼𝗳 𝗼𝘂𝗿 𝗺𝗶𝗻𝗲𝗿𝗮𝗹 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀 𝗶𝗻 𝗼𝘂𝗿 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝗶𝗲𝘀?” – 𝗪𝗘𝗡𝗗𝗔 𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗿𝗼𝘆𝗮𝗹𝘁𝗶𝗲𝘀

 

Dr. Tony Tsina Addai, President of the Western North Development Association (WENDA), has raised critical concerns about the distribution and visibility of benefits derived from Ghana’s mineral resources, especially in mining communities.

In a recent address, he emphasized the need for greater accountability and transparency in the use of mining royalties.

According to Dr. Addai, mining companies operating in Ghana are mandated by law to pay royalties amounting to 5% of their total revenue. These payments are collected by the Ghana Revenue Authority on behalf of the government, forming a significant part of national revenue.

He explained that the government does not retain all royalties at the national level. Instead, there is a structured mechanism designed to ensure that a portion of these funds reaches the local communities that are directly affected by mining operations.

Dr. Addai outlined that 80% of the collected royalties are deposited into the Consolidated Fund, which supports the national budget. These funds enable the government to implement development initiatives across the country, from education and healthcare to infrastructure.

The remaining 20% of the royalties, he noted, is earmarked for local development. This share is equally divided between the Minerals Development Fund (10%) and the Office of the Administrator of Stool Lands (10%).

Highlighting the role of the Minerals Development Fund, Dr. Addai stated that it finances critical community projects in mining areas—such as school construction, healthcare facilities, and roads—that directly benefit residents in these impacted communities.

On the portion allocated to the Office of the Administrator of Stool Lands (OASL), Dr. Addai detailed its constitutional mandate to further disburse the funds. The OASL retains 10% of its share for administrative costs, while the remaining 90% is distributed to various stakeholders based on a predetermined formula.

Out of that 90%, 25% is assigned to traditional authorities (stools) to maintain cultural and customary institutions. Additionally, 20% is paid to paramount chiefs as compensation for their leadership and management role over the land.

The largest portion—55%—goes to the Municipal or District Assemblies within the mining areas. These assemblies are expected to use the funds for socioeconomic development projects that meet the pressing needs of their localities.

Dr. Addai also mentioned the potential role of Local Management Committees, which may be formed in some districts to supervise the effective and transparent use of these royalties. These committees are intended to ensure that funded projects reflect community priorities and promote accountability.

Concluding his address, the WENDA President emphasized that the structured distribution framework is intended to make mineral wealth a tool for both national growth and local transformation.

However, he posed a powerful and thought-provoking question: “Do we see the benefits of our mineral resources in our communities?” This question challenges stakeholders to reflect on the real impact of royalties on development in Ghana’s mining regions.