The federal government has introduced stricter controls on the use of imprest funds across ministries, departments and agencies (MDAs), capping reimbursable cash advances for ministers at N700,000 and imposing tighter reporting and compliance requirements as part of efforts to strengthen fiscal discipline.
The measures are contained in the 2026 Annual General Imprest Warrant signed by Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, and communicated through a treasury circular issued by the Office of the Accountant-General of the Federation on June 3.
The fresh move is part of a broader push to strengthen oversight of government spending after years of concerns raised by auditors and oversight bodies over weak controls, delayed retirement of cash advances and the misuse of public funds through imprest accounts.
Under the new framework, ministers will be eligible for a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will be limited to N500,000.
Directors and heads of departments can access up to N300,000, while heads of federal formations in states and other authorised imprest holders will be restricted to N100,000.
The directive authorises accounting officers across the executive, legislative and judicial arms of government to approve funds for eligible holders, while establishing clearer spending limits and accountability measures for managing public resources.
“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, according to the circular signed by Shamseldeen Ogunjimi, Accountant-General of the Federation (AGF).
Imprest refers to cash advances granted to public officials to meet routine and urgent government expenses that may not require the full procurement process. Under Nigeria’s financial regulations, beneficiaries are required to account for expenditures with supporting documentation and retire outstanding advances before obtaining fresh approvals.
In a move aimed at curbing the frequent recycling of such advances, the government also restricted the rate at which imprest can be replenished.
Reimbursements will generally be limited to once every quarter and may not exceed two reimbursements within the same quarter except in exceptional circumstances.
The administration further tightened procurement rules by directing ministries and agencies to process purchases exceeding N1 million through formal 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 stated.
To improve oversight, all self-accounting ministries, extra-ministerial departments and agencies have been instructed to submit returns to the Office of the Accountant-General within 30 days.
The reports are expected to detail how imprest allocations granted in 2025 were retired and provide updated lists of approved imprest holders for 2026, including their locations and designations.
The government is also requiring imprest holders to operate dedicated bank accounts for such transactions in line with the federal government’s electronic payment policy.
Monthly statements showing funds credited to the accounts and evidence of retirement of expenditures must be submitted to the treasury authorities.
The Accountant-General’s office said compliance will be monitored through routine inspections by the Treasury Inspectorate Department throughout the financial year.
Officials who fail to adhere to the regulations risk losing the authority to issue imprest and may face additional sanctions.
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