FG Slashes Ministers’ Imprest to N700,000, Tightens Spending Rules

The Federal Government has introduced stricter controls on the use of public funds, reducing the maximum reimbursable imprest for ministers to N700,000 and imposing tougher spending and reporting requirements across Ministries, Departments and Agencies (MDAs).

The new measures are contained in the 2026 Annual General Imprest Warrant approved by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and conveyed through a 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.

Under the new guidelines, ministers will be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will be limited to N500,000. Directors and heads of departments are capped at N300,000, while heads of formations and other authorised imprest holders will have a ceiling of N100,000.

The government said the measures were aimed at strengthening accountability and ensuring prudent management of public resources.

“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.

It, however, stressed that reimbursement limits must strictly comply with the approved thresholds for each category of public officer.

In a move to curb excessive cash advances, the government also restricted 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 directive further tightened procurement procedures by mandating that purchases and services above N1 million be executed through contract awards in line with the provisions of the Public Procurement Act.

“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 document added.

To improve monitoring, self-accounting ministries, extra-ministerial departments and agencies have been directed to submit details of retired 2025 imprest allocations and approved 2026 imprest holders to the Office of the Accountant-General within 30 days.

The government also directed all imprest holders to operate dedicated bank accounts in line with its electronic payment policy and submit monthly reports showing funds received and evidence of retirement of advances.

Ogunjimi warned that the Treasury Inspectorate Department would carry out routine checks throughout the year to ensure compliance with 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,” he said.

Imprest is a cash advance provided to government officials to meet routine and urgent official expenses that may not require the full procurement process. Beneficiaries are expected to account for such funds and retire them before obtaining fresh approvals.

The latest directive is part of ongoing public financial management reforms aimed at improving transparency, accountability and value for money in government spending.