FG cuts ministers’ imprest to N700,000 in new spending controls
By Victor Idajili
The Federal Government has slashed reimbursable imprest limits and tightened oversight of public funds as part of fresh measures to strengthen financial discipline across Ministries, Departments and Agencies.
The new rules are contained in the 2026 Annual General Imprest Warrant signed by Finance Minister Taiwo Oyedele and conveyed in a Treasury Circular dated June 3, 2026, from the Office of the Accountant-General of the Federation, Shamseldeen Ogunjimi.
Accounting officers in the three arms of government can now approve funds to eligible imprest holders, but with stricter caps:
Ministers: Maximum N700,000
Permanent secretaries & directors-general: N500,000
Directors & heads of departments: N300,000
Heads of formations in states & other authorised holders: N100,000
The Office of the Accountant-General said the limits align with Financial Regulation 1003 and are meant to enforce accountability and prudent use of public resources.
The government also restricted how often imprest can be reimbursed. “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.
All local procurements of stores and services above N1 million must now go through contract awards in line with the Public Procurement Act, except where the Act provides otherwise.
Accounting officers and expenditure controllers are required to ensure strict compliance with financial regulations on managing and retiring imprest accounts.
To strengthen monitoring, all self-accounting ministries, departments and agencies must submit returns to the Accountant-General within 30 days. The returns should detail how 2025 imprest was retired, plus lists of approved 2026 imprest holders and their locations.
Imprest holders must also operate dedicated operational bank accounts under the federal e-payment policy. Monthly reports showing funds received and evidence of retirement must be sent to the Accountant-General’s office.
The Treasury Inspectorate Department will conduct routine inspections through the year. “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 warned.
Imprest is a cash advance for routine or urgent official expenses that don’t require full procurement. Under financial regulations, holders must account for spending with receipts and retire advances before getting fresh approvals.
The directive was sent to top officials including the Chief of Staff to the President, ministers, permanent secretaries, service chiefs, the IGP, heads of federal commissions, anti-corruption agencies and revenue-generating institutions.
Successive governments have tried to tighten imprest controls after audit reports flagged weak documentation, delayed retirement and misuse of public funds. Recent reforms like the Treasury Single Account and expanded e-payment systems are part of broader efforts to improve transparency and value for money. The latest circular signals another push to tighten oversight of cash advances across the federal public service.
