The Federal Government has initiated a sweeping crackdown on the use of imprest and cash advances by Ministries, Departments, and Agencies (MDAs) following a sharp spike in disbursements that saw over ₦2.27 billion issued in 2024—an increase of more than 308% from ₦556.3 million recorded in 2023.
Fresh data from GovSpend, a public finance transparency platform run by BudgIT, shows that ₦1.19 billion was disbursed for imprest and another ₦1.08 billion for cash advances within the first half of 2024. This prompted immediate fiscal reforms, with the Office of the Accountant-General of the Federation issuing two Treasury Circulars on July 25, 2025, imposing new spending ceilings and stricter compliance rules.
Imprest Use Under Scrutiny
Imprest—routinely allocated funds for day-to-day operational expenses—and cash advances for specific administrative tasks have both come under fire for abuse, non-retirement, and duplication.
Records show the State House Headquarters Transit Account alone received monthly allocations of ₦13 million in 2024, totaling over ₦143 million—exactly mirroring its 2023 drawdowns. Similarly, the Defence Research and Development Bureau received ₦97.36 million across multiple entries tagged for office imprest and staff grants. The EFCC also logged a combined ₦954.78 million in reversed entries related to imprest and forex replenishment.
Other notable allocations include ₦18 million to the Federal University of Technology, Ikot Abasi for resource verification, and ₦9.6 million to the Federal Character Commission for special imprest. Overall, imprest disbursements in 2024 rose by more than 404% compared to 2023.
Cash Advances Soar in Youth Ministry
Cash advance disbursements rose 237% from ₦319.8 million in 2023 to ₦1.08 billion in 2024, with a significant portion attributed to the Federal Ministry of Youth Development. Funds were earmarked for events such as youth mentorship programmes, mental health campaigns, and skills development initiatives.
Disbursement records show repeated multi-million-naira advances issued to a handful of officials—some appearing up to five times in a single quarter. These included ₦29 million for UNIDO-backed feeding programmes, ₦62 million for training youth with disabilities, and ₦39 million for World Youth Skills Day commemorations.
The State House also featured prominently, with allocations such as ₦25.6 million for refreshments during a digitisation training for 450 staff, and multiple entries for Workers’ Day kits, retreats, and cabinet purchases.
Treasury Moves to Restore Fiscal Discipline
In response, the Accountant-General’s Office has introduced new caps and reporting requirements under a revised financial control regime.
Key highlights of the new rules include:
- Imprest Limits:
- Ministers – ₦700,000 per quarter
- Permanent Secretaries / DGs – ₦500,000
- Directors – ₦300,000
- Other officers – ₦100,000
- Reimbursement Frequency:
- Only once per quarter (maximum twice under exceptional circumstances)
- Procurement Cap:
- All local purchases above ₦1 million must follow formal contract award procedures, in line with the Public Procurement Act, 2007.
In addition, the Treasury has mandated that all imprest holders open dedicated operational bank accounts for managing and retiring funds, with monthly reports to be submitted to the Office of the Accountant-General.
All MDAs are now required to submit comprehensive reports on 2024 imprest usage and the full list of 2025 imprest holders within 30 days.
Personal Advances Abolished, New Advance Thresholds Set
The second circular scrapped personal cash advances altogether and redefined the framework for issuing project-related advances.
New guidelines for cash advances include:
- Special Project Advances: Capped at ₦10 million
- Regular Administrative Advances: Capped at ₦1 million
- Eligible Officers: Only those from Grade Level 10 and above
- Advance Retirement: Must be completed within the year or immediately upon project completion
The revised policy also removes the requirement for opening special accounts with the Central Bank or Accountant-General’s Office for special project funds. However, concurrent advances are strictly prohibited, and unretired advances must be tracked through age analysis in annual financial statements.
According to the circular, the reforms are aimed at enhancing operational efficiency, improving transparency, and ensuring that disbursements align with the true cost of government operations.
The directives, which take effect from August 1, 2025, have been circulated across all arms of government, including the executive, legislature, judiciary, security agencies, and foreign missions, with a stern call for full compliance.
Treasury inspectors have been tasked with monitoring implementation, and any breach will attract sanctions, including the withdrawal of imprest privileges.
These measures represent the Federal Government’s latest push to rein in public spending leakages and restore discipline in the management of petty cash systems across MDAs.
