The Federal Government has introduced stricter controls on the use of public funds, unveiling new limits on reimbursable imprest and imposing tighter oversight measures across Ministries, Departments and Agencies (MDAs) in an effort to strengthen financial accountability.
The measures are contained in the 2026 Annual General Imprest Warrant, signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and communicated through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation.
The circular, dated 3 June 2026 and signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi, authorises accounting officers across the executive, legislative and judicial arms of government to approve funds for eligible imprest holders, while introducing new spending thresholds and compliance requirements.
Under the revised framework, ministers will be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will be limited to N500,000. Directors and heads of departments may access up to N300,000, while heads of formations in the states and other authorised officers will be restricted to N100,000.
The Office of the Accountant-General said the directive was issued in line with Financial Regulation 1003 and forms part of broader efforts to promote prudent management of public resources.
“All Accounting Officers in the three arms of government, including Ministries, Extra-Ministerial Offices and Agencies, are hereby authorised to approve funds to eligible imprest holders,” the circular stated.
It added, however, that reimbursement limits would be strictly applied according to rank and responsibility.
In a further move aimed at curbing abuse, the government also restricted the frequency with which imprest accounts may be replenished.
“The frequency of reimbursement of any standing imprest shall normally be once in a quarter and shall not exceed twice in a quarter where the need arises,” the circular stated.
The directive also reinforces existing procurement rules by requiring that all local purchases of goods and services valued above N1m be undertaken through formal contract awards, except where exemptions are provided under the Public Procurement Act.
“All local procurement of stores and services costing above N1,000,000 shall be made only through the award of contracts, except as otherwise provided by the Public Procurement Act,” the circular noted.
Accounting officers and expenditure controllers have been instructed to ensure full compliance with regulations governing the management and retirement of imprest accounts.
To strengthen monitoring and reporting, all self-accounting ministries, extra-ministerial departments and agencies are required to submit returns to the Office of the Accountant-General within 30 days. These returns must include details of how imprest allocations for 2025 were retired, together with lists of approved imprest holders for 2026 and their respective duty locations.
The government has also directed all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy.
Monthly reports showing funds received, expenditure details and evidence of retirement of advances must be submitted to the Accountant-General’s office.
Ogunjimi warned that compliance would be closely monitored through routine inspections by the Treasury Inspectorate Department and that sanctions would be imposed on officials who violate the regulations.
“Any breach of the regulations in the operation of imprest accounts shall lead to the withdrawal of the right to issue any imprest by the affected accounting officer, and appropriate sanctions shall be applied accordingly,” the circular stated.
The directive was circulated to senior government officials, including the Chief of Staff to the President, ministers, permanent secretaries, service chiefs, the Inspector-General of Police, heads of extra-ministerial agencies, anti-corruption bodies, federal commissions and revenue-generating institutions.
Imprest is a cash advance issued to public officers to meet routine or urgent official expenses that do not necessarily require the full government procurement process. Under Nigeria’s financial regulations, recipients are required to account for every expenditure with supporting documentation and retire advances before obtaining fresh approvals.
Successive administrations have sought to tighten controls around the management of imprest following repeated concerns raised by auditors and oversight institutions over poor record-keeping, delayed retirement of advances and instances of misuse of public funds.
In recent years, the Federal Government has expanded the use of electronic payment systems, strengthened treasury controls through the Treasury Single Account and introduced stricter compliance requirements for MDAs as part of broader public financial management reforms.
The latest measures signal a renewed effort by the administration to tighten oversight of cash advances, improve transparency and reinforce adherence to financial regulations across the federal public service.
