The Federal Government has rolled out stricter financial control measures across Ministries, Departments and Agencies (MDAs), introducing new limits on official cash advances and reinforcing compliance requirements aimed at curbing abuse of public funds.
The reforms are contained in the 2026 Annual General Imprest Warrant approved by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and communicated through a Treasury Circular issued by the Office of the Accountant-General of the Federation.
The directive, dated June 3, 2026, empowers accounting officers across the executive, legislative and judicial arms of government to approve imprest payments for eligible officials, while simultaneously introducing tighter spending ceilings and reporting obligations.
Under the new framework, senior government officials will operate within clearly defined reimbursement limits. Ministers will now be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will be restricted to N500,000. Directors and heads of departments will be eligible for up to N300,000, while heads of formations and other approved officers will be limited to N100,000.
The Office of the Accountant-General said the policy aligns with Financial Regulation 1003 and forms part of broader efforts to promote accountability, transparency and prudent management of government 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.”
However, 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 a move designed to strengthen expenditure controls, the government also imposed restrictions on how frequently officials can seek reimbursement of standing imprests.
“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 new guidelines further seek to discourage the use of imprest accounts for major purchases by directing government institutions to comply with procurement regulations for higher-value transactions.
“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 stressed that all accounting officers and expenditure controllers must strictly comply with existing financial regulations governing the issuance, management and retirement of imprest funds.
To improve oversight and accountability, all self-accounting ministries, extra-ministerial departments and agencies have been instructed to submit detailed reports to the Office of the Accountant-General within 30 days of the issuance of the circular.
The reports are expected to include evidence showing how imprest allocations for 2025 were retired, as well as comprehensive lists of authorised imprest holders for 2026 and their respective duty locations.
As part of the reforms, imprest holders are also required to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy.
The circular requires monthly submissions detailing funds credited to such accounts and documentary evidence of how the advances were retired.
The Accountant-General warned that compliance would be closely monitored throughout the financial year through routine inspections by the Treasury Inspectorate Department.
“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 a wide range of top government officials and institutions, 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 agencies.
Imprest serves as a cash advance mechanism that enables public officers to meet urgent and routine official expenses that may not require the full procurement process. However, under Nigeria’s financial regulations, every imprest expenditure must be supported by appropriate documentation and fully retired before fresh approvals can be granted.
The latest policy forms part of ongoing efforts by the Federal Government to strengthen public financial management, improve transparency and eliminate loopholes that have historically contributed to poor documentation, delayed retirement of advances and misuse of public resources.
With the Treasury Single Account, electronic payment systems and other fiscal reforms already in place, the new imprest guidelines represent another step in the government’s drive to enforce stricter financial discipline across the federal public service and ensure greater accountability in public expenditure.
(Ripples)