Domestic Revenue Mobilization: Suame, other assemblies spend more money to collect less

In the Nabdam District of the Upper East Region, traders at the Kongo market often wave away the young men sent to collect daily levies on behalf of the Assembly.

“Our businesses don’t fetch much. Why should we pay? We don’t even see what the Assembly has used what we paid in the past for,” said Lariba, a trader weary of what she describes as “taxes without benefits.”

Her resistance is not unique. Across Ghana, residents routinely resist paying local taxes, a reflection of both poverty and deep mistrust. But beneath these everyday exchanges lies a national crisis: Ghana’s district assemblies are haemorrhaging money in the very act of collecting it.

A 2023, Ghana Statistical Service (GSS) and United Nations Development Programme (UNDP) study revealed systemic inefficiencies in internally generated funds (IGF). The Auditor-General later put numbers to the rot: in 2024, 245 collectors across 55 assemblies were paid GHC11.7 million in salaries yet mobilised only GH¢4.8 million in taxes – just 40% of what they cost.

The paradox is striking. The government is spending more to chase local revenue than it earns. Assemblies are saddled with poorly trained collectors, unreliable business data, rampant leakages, and political interferences that prevent enforcement. Together, these flaws undermine the very foundations of Ghana’s decentralisation model, which was supposed to make local authorities more self-reliant.

Nabdam: Poverty as an excuse for inaction

In Nabdam, a district in Ghana’s Upper East Region ranked the poorest nationwide in the Multidimensional Poverty Index, poverty itself becomes a shield against taxation.

The numbers are startling: in 2024, three collectors there earned more than GHC121,000 in salaries but managed to raise only GHC21,000 in actual revenue – less than a fifth of their pay.

The situation is replicated across the Upper East Region. In just four assemblies, nine collectors were paid GHC326,767.52 but collected only GHC119,096.

The District Chief Executive of Nabdam, Francis Tobig, told The Fourth Estate: “Before you take revenue from people, let’s say property rate, the person should first of all have property. Here’s the case, the person has no property. What rate are you going to get from that?”

But Nabdam’s inability to raise funds has visible consequences. Projects are abandoned midway for lack of money. Staff work in cramped conditions where up to five officials share a single desk.

“A lot of projects we are not able to carry out, and that is because we are not getting enough internally generated revenue,” Tobig added.

Yet, critics argue that poverty, while real, has become a convenient excuse for a system riddled with inefficiencies. Even in poor districts, studies show leakages and weak enforcement play as much of a role as poverty in undermining collections.

Berekum East: Salaries without results

If Nabdam highlights the poverty trap, Berekum East in the Bono Region exposes a culture of inefficiency. Ranked the 42nd least deprived district in Ghana, it is far better off than Nabdam. Yet, its revenue mobilisation record is scarcely better.

In 2024, the Assembly spent GHC763,143 on salaries for 17 collectors. Their output? Just GHC346,614 – about 45 percent of their pay.

By its own benchmarks, the Assembly requires collectors to raise at least three times their salaries. But as Municipal Finance Officer, Sahara Tahidu admitted, this is “rarely achieved.” His verdict was blunt: “Whether they collect or not, at the end of the month, they will be paid.”

Part of the problem is corruption. Collectors are accused of “undercarboning” – issuing receipts for only part of what traders pay and pocketing the difference. “They can’t account for their money at the end of the period. We have a lot of them in the system,” Tahidu conceded in an interview with The Fourth Estate.

Politics compounds the dysfunction. Enforcement efforts are frequently blocked to protect electoral interests. “[When] the political head said no – if you enforce, they will not vote for his party,” Tahidu revealed.

Meanwhile, the potential is clear. When a special taskforce was created, it managed to rake in about GHC15,000 every week, proving that disciplined enforcement could transform collections. “It shows the money is there. The problem is the system we are using to collect it,” Tahidu said.

But even the Auditor-General’s figures do not capture the full picture. Tahidu revealed to The Fourth Estate that the Assembly actually mobilised more than GHC2 million in 2024, but those numbers were not credited to the permanent revenue collectors. For Berekum East, the real issue is structural: a payroll system that guarantees salaries regardless of performance, poor accountability, and entrenched political interference.

Suame: Failure in abundance

The Suame Municipal Assembly in the Ashanti Region reveals another layer of dysfunction. Suame is no backwater: it is home to the famous Suame Magazine industrial hub, one of West Africa’s largest clusters of artisans and engineers. Ranked the 9th least deprived district nationwide, it should be one of Ghana’s strongest revenue performers.

Yet in 2024, Suame’s revenue collectors were paid GHC257,477 in salaries but managed to raise just GHC108,523. Across the Ashanti Region, Assemblies collectively spent over GHC2.2 million on collectors but raised barely GHC1.2 million in return.

Why does a commercial powerhouse like Suame underperform?

For Reindolf Yeboah, Superintendent of Collectors, infrastructure plays a role. Ongoing roadworks and demolition of billboards have wiped out significant revenue sources, slashing collections by an estimated 30 percent.

But Yeboah admits to The Fourth Estate that the deeper problem lies in attitudes and systems. “Some collectors underperform due to laziness,” he said. “The only sustainable solution is to let the Public Financial Management Act work.”

Residents complain they rarely see any benefits from the taxes they pay. Property rates are mispriced. Unauthorised individuals compete illegally with accredited collectors, adding to leakages. In short, even in Ghana’s wealthiest enclaves, taxpayers are unconvinced that the Assembly deserves their money.

A national pattern of waste

The evidence from Nabdam, Berekum East, and Suame reflects a broader national malaise. Whether in deprived rural areas, middle-income towns, or commercial hubs, assemblies spend more than they mobilise, undermining Ghana’s fiscal decentralisation agenda.

The GSS-UNDP report insists that technology offers a way out. Platforms like DLRev, which allow residents to pay directly via mobile money, have proven effective in cutting out middlemen, reducing corruption, and improving transparency. Kumasi Metropolitan, using the DLRev platform, collected 85.7% of its revenue potential in 2022, demonstrating significantly higher efficiency compared to non-digitized assemblies.

But technology alone cannot fix political interference or rebuild trust. Assemblies must demonstrate a tangible link between taxes and development. Better roads, functioning markets, clean streets, and streetlights – without these, compliance will remain elusive.

As Tahidu put it: “People will pay if they see the benefit. But when they pay and see nothing, they stop.”

For Solomon Okai, acting Programmes Officer at non-profit organisation, Foundation for Security and Development in Africa (FOSDA), the solution is clear – make revenue mobilisation performance-based.

“Everything has to be performance-based. Whether you are a permanent collector or on commission, your salary must reflect how much you mobilise,” he told The Fourth Estate.

Okai insists digitisation is the game-changer. “Since 2016, MMDAs have only been able to collect about 20 percent of their own revenue needs. But when districts digitise, they can raise up to 83 percent. That’s the difference automation makes.”

But he warns against over-centralisation.

“The Unified Property Rate system collapsed because it undermined fiscal decentralisation. MMDAs must lead their own platforms, covering all sources – from property rates to market tolls and business permits,” Okai stated.

Beyond digitalisation, Okai calls for stronger data systems and wider coverage. Districts must build property databases, expand collections to include night-time businesses, and intensify public education on digital payment options.

“Seventy-nine percent of Ghanaians are online, yet many don’t even know Assemblies have platforms for payment. How do you expect compliance without sensitisation?” he asked.

The numbers do not lie. In poor districts like Nabdam, poverty undermines enforcement. In middle-income areas like Berekum East, corruption and politics cripple efficiency. And in wealthy hubs like Suame, mismanagement and poor accountability stifle results.

The result is the same: assemblies that consume more than they generate, perpetuating a cycle of waste, mistrust, and underdevelopment.