Federal Government Cuts Ministers’ Reimbursable Imprest to N700,000, Tightens Spending Controls
The Federal Government has introduced new measures aimed at strengthening financial discipline and enhancing accountability in the management of public funds across Ministries, Departments and Agencies (MDAs).
The directives 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 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 funds for eligible imprest holders, while introducing stricter spending limits 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 have a ceiling of N500,000. Directors and heads of departments are limited to N300,000, while heads of formations in states and other authorised imprest holders will be entitled to a maximum of N100,000.
According to the Office of the Accountant-General, the measures are in line with the provisions of Financial Regulation 1003 and are designed to promote prudent management of public resources.
The circular stated that all accounting officers in ministries, extra-ministerial offices and agencies are authorised to approve funds to eligible imprest holders within the approved limits.
In a further move to curb abuse of public funds, the government has also restricted the frequency of imprest reimbursements. Under the new rules, reimbursements are expected to be made once every quarter and may only exceed that limit in exceptional circumstances, with a maximum of two reimbursements per quarter.
The Federal Government also directed that all local procurement of goods and services valued above N1 million must be carried out through the award of contracts in accordance with the Public Procurement Act and other relevant regulations.
To strengthen oversight, all self-accounting ministries, extra-ministerial departments and agencies have been ordered to submit returns to the Office of the Accountant-General within 30 days of the circular. The returns must include details of the retirement of 2025 imprest allocations, as well as lists of approved imprest holders for the 2026 financial year and their respective locations.
The circular further mandates imprest holders to operate dedicated operational bank accounts in compliance with the Federal Government’s electronic payment policy. Monthly reports detailing funds paid into the accounts and evidence of retirement of such funds are also to be submitted to the Accountant-General’s office.
Ogunjimi warned that the Treasury Inspectorate Department would conduct routine inspections throughout the year to ensure compliance with the regulations.
He stated that any violation of the rules governing the operation of imprest accounts would attract sanctions, including the withdrawal of the authority of affected accounting officers to issue imprest and other disciplinary measures deemed appropriate.
The directive was addressed to key 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 do not necessarily require the full procurement process. Under Nigeria’s financial regulations, beneficiaries are required to account for all expenditures with supporting documents and retire outstanding advances before obtaining fresh approvals.
The latest reforms form part of broader efforts by the Federal Government to strengthen treasury controls, improve transparency and accountability, and ensure value for money in public spending.