The Federal Government has introduced a fresh set of measures aimed at strengthening financial discipline across Ministries, Departments and Agencies by imposing new limits on reimbursable imprest and tightening oversight of public funds.

According to The PUNCH the new 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, was signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi. It authorises accounting officers across the executive, legislative and judicial arms of government to approve funds for eligible imprest holders while establishing specific spending thresholds and compliance obligations.

Under the new guidelines, ministers will be entitled to a maximum reimbursable imprest of N700,000. Permanent secretaries and directors-general will have a limit of N500,000, while directors and heads of departments will be entitled to N300,000. Heads of formations in states and other authorised imprest holders will have a maximum limit of N100,000.

The Office of the Accountant-General stated that the measure aligns with the provisions of Financial Regulation 1003 and forms part of broader efforts to ensure accountability and prudent management of public resources.

The circular stated, “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.”

However, it added that “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.

In another major directive, the Federal Government placed restrictions on the frequency of imprest reimbursements.

“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.

The government also directed accounting officers and expenditure controllers to ensure that all procurements exceeding N1 million are carried out through contract awards in accordance 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 noted.

The directive further stressed the need for strict compliance with financial regulations governing the administration and retirement of imprest accounts.

To strengthen monitoring and accountability, all self-accounting ministries, extra-ministerial departments and agencies have been directed to submit returns to the Office of the Accountant-General within 30 days of the circular.

The returns are expected to provide details of how 2025 imprest allocations were retired, as well as lists of approved imprest holders for 2026 and their respective locations.

The government also instructed all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy.

According to the circular, monthly reports detailing funds paid into the accounts, together with evidence showing the retirement of such funds, must be submitted to the Office of the Accountant-General.

The Accountant-General warned that the Treasury Inspectorate Department would conduct routine inspections throughout the financial year and enforce sanctions against any violations of the regulations.

“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 stated.

The directive was addressed to senior government officials and institutions, 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 may not require the full government procurement process.

Under Nigeria’s Financial Regulations, imprest holders are required to account for all expenditures with supporting documentation and retire such advances before seeking fresh approvals.

Successive administrations have sought to strengthen controls around imprest management following concerns raised in audit reports and by oversight institutions regarding weak documentation, delayed retirement of advances and cases involving the misuse of public funds.

In recent years, the Federal Government has expanded the use of electronic payment systems, strengthened treasury controls through the Treasury Single Account (TSA) policy and tightened compliance requirements for Ministries, Departments and Agencies. These measures form part of wider public financial management reforms designed to improve transparency, accountability and value for money in government spending.

The latest circular signals the Federal Government’s determination to further tighten oversight of cash advances and reinforce compliance with financial regulations across the federal public service.