The Federal Government said the move would ensure fund tracking to promote accountability and transparency.
KaNo —
The Federal Government has introduced new measures aimed at tightening financial discipline across Ministries, Departments and Agencies (MDAs), placing fresh limits on reimbursable imprest and strengthening oversight mechanisms to curb misuse of public funds.
The directive, contained in the 2026 Annual General Imprest Warrant, signals a renewed push by the government to enforce accountability and ensure prudent management of resources within the federal public service.
In a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the warrant was conveyed 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, Shamseldeen Ogunjimi, outlines new spending thresholds, stricter compliance requirements, and enhanced monitoring procedures for the use of imprest across the three arms of government.
Imprest is a system of cash advances provided to public officers to cover routine or urgent official expenses that may not require the full government procurement process.
However, over the years, concerns have been raised by auditors and oversight institutions over weak documentation, delayed retirement of advances, and instances of misuse.
Permanent secretaries and directors-general are limited to N500,000, while directors and heads of departments can access up to N300,000. Heads of formations in states and other authorised imprest holders will have a ceiling of N100,000.
The government said the revised limits were in line with the provisions of Financial Regulation 1003 and form part of broader efforts to instill fiscal discipline across MDAs.
“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,” the circular stated, while emphasising that the specified limits must be strictly adhered to” the statement reads
In addition to setting spending caps, the government has also introduced restrictions on the frequency of imprest reimbursements.
According to the circular, reimbursements for any standing imprest should typically be processed once every quarter and must not exceed twice within the same quarter, except under exceptional circumstances.
The move is expected to reduce the risk of excessive or uncontrolled withdrawals and encourage better planning and accountability among public officers.
Another key provision in the directive is the tightening of procurement processes.
The government has mandated that any local procurement of goods and services exceeding N1 million must be conducted strictly 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 statement added
This requirement is designed to close loopholes that have historically allowed some officials to bypass due process by splitting contracts or using imprest funds for large expenditures that should ordinarily go through formal procurement channels.
To further strengthen monitoring and compliance, all self-accounting ministries, extra-ministerial departments, and agencies have been directed to submit detailed returns to the Office of the Accountant-General within 30 days of the issuance of the circular.
These returns must include comprehensive details of how imprest allocations for the 2025 financial year were retired, as well as a list of approved imprest holders for 2026 and their respective locations.
The directive also mandates all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy. Monthly reports detailing funds paid into these accounts, along with evidence of retirement of such funds, must be submitted regularly to the Accountant-General’s office.
Officials say this measure will enhance transparency and provide a clearer audit trail for tracking public funds.
In a further warning, the Accountant-General disclosed that the Treasury Inspectorate Department would conduct routine inspections throughout the financial year to ensure compliance with the new rules.
The directive was addressed to a wide range of 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.
Financial analysts say the move reflects the government’s determination to tighten control over public spending amid growing concerns about fiscal leakages and inefficiencies within the system.
Over the years, audit reports have repeatedly highlighted lapses in the management of imprest, including failure to retire advances promptly and inadequate documentation of expenditures.
Such gaps have often created opportunities for abuse and weakened public trust in government financial practices.
The latest measures are part of a broader set of public financial management reforms implemented by the Federal Government in recent years.
These include the expansion of electronic payment systems, the enforcement of the Treasury Single Account (TSA), and stricter compliance requirements for MDAs.
The introduction of stricter imprest controls is therefore seen as a decisive step, particularly in addressing long-standing concerns about financial mismanagement within the public sector.
Nigerians are grappling with high cost of living and inflation following the removal of fuel subsidy by President Bola Ahmed Tinubu .
