Concerns have been raised over the management of mineral royalty funds by some district assemblies, with governance experts warning that the practice is limiting development in Ghana’s mining communities.

Dr Emmanuel Steve Asare Manteaw, policy analyst and co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), says evidence from successive GHEITI reports suggests that revenues meant to support local development are frequently diverted towards recurrent spending rather than long-term investment projects.

Speaking on the sidelines of a Media and Civil Society Capacity Building Workshop organised by the Natural Resource Governance Institute (NRGI) on corruption risks within Ghana’s emerging lithium value chain, Dr Manteaw noted that this pattern of expenditure has deprived many mining communities of the benefits they should have derived from decades of resource extraction.

Ghana receives significant income from mineral royalties paid by mining companies, part of which is transferred to local authorities to finance development initiatives in communities that host mining operations. However, Dr Manteaw argued that these funds are often not being utilised in a manner that delivers sustainable economic or social impact.

He pointed to findings contained in GHEITI reports, which indicate that some assemblies have used portions of royalty revenues to finance recurrent expenses and activities that offer little lasting value to local residents. These include contributions towards funerals and other short-term expenditures.

Dr Manteaw further criticised the use of royalty funds to cover costs associated with public events, such as hiring chairs, canopies and related logistics, describing such spending as inconsistent with the broader objective of promoting long-term community development.

According to him, mineral resources are exhaustible assets and revenues generated from them should be invested strategically in projects capable of delivering enduring benefits for present and future generations.

He therefore called for stronger regulatory frameworks and clearer guidelines governing the use of mineral royalties, stressing the need to prioritise capital projects and infrastructure development.

Dr Manteaw believes such reforms would help ensure that communities affected by mining activities receive tangible and lasting benefits from the extraction of natural resources.