Federal Gov’t Slashes Ministers’ Imprest To N700,000, Tightens Spending Rules

The Federal Government has slashed the maximum reimbursable imprest available to ministers to N700,000 and introduced stricter spending and accountability measures for Ministries, Departments and Agencies (MDAs) as part of efforts to strengthen financial discipline and curb misuse of public funds.

The new measures were contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and conveyed through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation.

The circular, signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi, authorises accounting officers across the three arms of government to approve funds to eligible imprest holders while setting clear spending thresholds and compliance requirements.

Under the new guidelines, 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 will be entitled to N300,000, while heads of formations in states and other authorised imprest holders will have a ceiling of N100,000.

The Office of the Accountant-General said the move was in line with the provisions of Financial Regulation 1003 and forms part of ongoing efforts to ensure accountability and prudent management of public resources.

The circular stated, “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.”

It added that “the limit of reimbursable imprest shall be” N700,000 for ministers, N500,000 for permanent secretaries and directors-general, N300,000 for directors and heads of departments, and N100,000 for heads of formations and other authorised holders.

In another major directive, the government restricted the frequency of imprest reimbursements.

“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 government also directed all accounting officers and expenditure controllers to ensure that procurements above N1 million are conducted through contract awards in line with existing procurement laws.

“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.

The directive further emphasised strict compliance with financial regulations governing the management and retirement of imprest accounts.

To strengthen monitoring and accountability, all self-accounting ministries, extra-ministerial departments and agencies have been directed to submit returns to the Accountant-General within 30 days of the circular.

The returns are expected to contain details of how 2025 imprest allocations were retired, as well as lists of approved imprest holders for 2026 and their locations.

The government also ordered imprest holders to operate dedicated operational bank accounts in compliance with the Federal Government’s electronic payment policy.

According to the circular, monthly reports detailing funds paid into the accounts and evidence of retirement of such funds must be submitted to the Office of the Accountant-General.

Ogunjimi warned that the Treasury Inspectorate Department would conduct routine inspections throughout the financial year and impose sanctions for violations.

“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 addressed to senior government officials, including the Chief of Staff to the President, ministers, permanent secretaries, heads of extra-ministerial agencies, service chiefs, the Inspector-General of Police, chairmen of federal commissions and anti-corruption agencies, as well as heads of revenue-generating institutions.

Imprest is a cash advance provided to public officers to cover routine and urgent official expenses that may not require the full government procurement process.

Under Nigeria’s Financial Regulations, imprest holders are required to account for all expenditures through supporting documents and retire such advances before obtaining fresh approvals.

Successive administrations have sought to strengthen controls around imprest management following concerns raised by audit reports and oversight institutions over weak documentation, 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, tightened treasury controls through the Treasury Single Account policy and strengthened compliance requirements for MDAs as part of broader public financial management reforms aimed at improving transparency, accountability and value for money in government spending.

The latest circular signals the government’s determination to further tighten oversight of cash advances and reinforce adherence to financial regulations across the federal public service.