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The Federal Government has introduced stricter financial control measures across Ministries, Departments and Agencies (MDAs), including a new cap of N700,000 on reimbursable imprest for ministers as part of efforts to strengthen accountability and prudent management of public funds.
The new guidelines are contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, and conveyed through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation (OAGF).
The circular, dated June 3, 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 imprest funds for eligible officials while introducing stricter spending thresholds and compliance requirements.
Under the new arrangement, ministers will be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general are limited to N500,000. Directors and heads of departments will receive up to N300,000, while heads of formations and other authorised officers will have a ceiling of N100,000.
The OAGF said the policy aligns with the provisions of Financial Regulation 1003 and forms part of ongoing reforms aimed at ensuring transparency and accountability in the management of public resources.
The circular also introduced restrictions on the frequency of imprest reimbursements, directing that standing imprest should ordinarily be reimbursed once every quarter and not more than twice within the same period, except under exceptional circumstances.
In another key measure, the government directed that all local procurement of goods and services exceeding N1 million must be executed through contract awards in accordance with the provisions of the Public Procurement Act.
According to the directive, expenditure controllers and accounting officers are expected to ensure strict compliance with procurement regulations and prevent the use of imprest accounts for transactions that should ordinarily undergo formal procurement procedures.
To enhance monitoring and oversight, all self-accounting ministries, extra-ministerial departments and agencies have been instructed to submit returns to the Accountant-General within 30 days of the circular.
The reports are expected to include details of how imprest allocations for 2025 were retired, as well as the names and locations of approved imprest holders for the 2026 fiscal year.
The government further directed all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy.
Monthly reports showing funds paid into the accounts and evidence of retirement of such funds must also be forwarded to the Office of the Accountant-General for verification and record purposes.
The Accountant-General warned that the Treasury Inspectorate Department would carry out routine inspections throughout the year to ensure compliance with the new guidelines.
He stressed that violations of the regulations could attract sanctions, including the withdrawal of the authority of affected accounting officers to issue imprest and other disciplinary measures deemed appropriate.
The circular was addressed to key government officials, including ministers, permanent secretaries, heads of agencies, service chiefs, the Inspector-General of Police, heads of federal commissions, anti-corruption agencies and revenue-generating institutions.
Imprest is a cash advance provided to public officers to meet routine and urgent official expenses that may not require the full procurement process. Beneficiaries are required by law to account for all expenditures and retire advances before seeking fresh approvals.
The latest directive is part of broader public financial management reforms by the Federal Government aimed at strengthening treasury controls, improving transparency and ensuring value for money in government spending.
