President Biya: Cameroon Local Tax Revenue Transfer Directive Issued

• Cameroonian President Paul Biya has directed the government to ensure timely transfer of tax revenue to municipalities and regions for the 2027 budget.
• The directive, issued on October 12, 2026, addresses persistent delays affecting local government finances.
• It concerns CFA603.6 billion in tax revenue projected for 2026 and aligns with the Local Taxation Law of December 23, 2024.
• The government and Ministry of Finance have previously acknowledged difficulties and irregular transfers of these funds.
• The measure aims to provide greater predictability and effective disbursement of resources to decentralized local authorities.

The implementation of President Biya's directive regarding timely tax revenue transfers holds significant implications for Cameroon's decentralized local authorities funding.

President Paul Biya of Cameroon has issued a significant directive aimed at ensuring the timely and effective transfer of tax revenues to the nation's municipalities and regions. This instruction, contained within the circular for the preparation of the 2027 state budget, was officially signed on October 12, 2026. The directive specifically mandates that decentralized local authorities actually receive the tax revenue collected on their behalf, a measure intended to address long-standing delays that have persistently hampered local government finances.

The presidential order, found in paragraph 20 of the circular, emphasizes the need for greater predictability in the financial resources allocated to these local entities. It calls for the effective disbursement of an estimated CFA603.6 billion in tax revenue projected for 2026, according to figures detailed in budget documents from the Ministry of Finance. This crucial move by President Biya seeks to regularize the flow of funds, which are vital for local governance and the implementation of essential development projects.

The directive from President Biya explicitly references and aligns with the provisions of the Cameroon Local Taxation Law of December 23, 2024. This legal framework underpins the fundamental requirement for the central government to ensure that tax revenues collected for local administrations are indeed transferred to them without undue delay. The presidential instruction reinforces the legal obligation to disburse these funds effectively, thereby strengthening the financial autonomy and operational capacity intended for decentralized local authorities under the law.

Compliance with the 2024 Local Taxation Law is a key aspect of this directive, highlighting the government's commitment to upholding established legal mandates regarding local government funding. The emphasis on effective disbursement underscores the importance of not just collecting, but also promptly and reliably transferring, these vital financial resources to the intended recipients at the local level, ensuring they can fulfill their statutory duties.

This presidential intervention comes amidst the government's acknowledgment of persistent difficulties in transferring tax revenue to local authorities. The Ministry of Finance itself had previously identified irregular transfers as a significant and recurring challenge affecting the financing of municipalities and regions. This recognition was detailed in a budget annex published in November 2025, where the ministry outlined the problems faced by local governments due to these inconsistent fund flows and their detrimental impact on local project implementation.

In response to these identified issues, the Ministry of Finance had recommended specific improvements to the existing fund transfer system. These recommendations were designed to enhance the ability of local governments to implement their projects and manage their budgets effectively, thereby mitigating the negative consequences of delayed funding. President Biya's recent directive can be seen as a direct response to these long-standing systemic problems and the ministry's earlier calls for reform, aiming to enforce a more reliable financial mechanism for local governance.

The implementation of President Biya's directive regarding timely tax revenue transfers holds significant implications for Cameroon's decentralized local authorities funding. Consistent and predictable access to these funds is critical for municipalities and regions to execute their mandates, including public service provision, infrastructure development, and other local development projects. The historical municipal budget delays Cameroon has experienced due to irregular transfers have often stalled essential local initiatives, impacting citizens directly.

This directive, therefore, is crucial for improving the operational capacity and financial stability of local governments across the nation. It aims to ensure that the substantial projected tax revenue of CFA603.6 billion for 2026 actually reaches the local entities for whom it is intended, thereby fostering better governance, more effective local development, and greater accountability in public finance management throughout Cameroon.

Lawyers advising municipalities or businesses engaged with local authorities in Cameroon should monitor the implementation of President Biya's directive regarding timely tax revenue transfers, as it could impact local project funding, contractual obligations, and compliance with the Local Taxation Law of December 23, 2024.

Source: Original reporting via local financial news.