Key points
- Federal Government has capped ministers’ reimbursable imprest at N700,000 as part of new financial accountability measures.
- New guidelines restrict imprest reimbursements and mandate contract awards for procurements above N1 million.
- MDAs are required to submit detailed reports on imprest utilisation as government intensifies oversight and compliance monitoring.
Main story
The Federal Government has introduced stricter financial control measures across Ministries, Departments and Agencies (MDAs), including a reduction in the maximum reimbursable imprest available to ministers and tighter monitoring of public expenditure.
The new directives are contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, and conveyed through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation (OAGF).
The circular, dated June 3, 2026, and signed by the Accountant-General of the Federation, Mr Shamseldeen Ogunjimi, authorises accounting officers across the executive, legislative and judicial arms of government to approve funds for eligible imprest holders, subject to newly established spending limits.
Under the revised framework, ministers are entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general are limited to N500,000. Directors and heads of departments can access up to N300,000, while heads of formations and other authorised imprest holders have a ceiling of N100,000.
The OAGF said the measures were introduced in accordance with Financial Regulation 1003 and are aimed at promoting accountability, transparency and prudent management of public resources.
In addition to the spending limits, the government has restricted the frequency of imprest reimbursements to once per quarter, with a maximum of two reimbursements in exceptional circumstances.
The circular also directed that all procurements of goods and services exceeding N1 million must be processed through formal contract awards, except where otherwise provided by the Public Procurement Act.
The issues
The latest directive reflects the government’s efforts to strengthen public financial management amid longstanding concerns over the misuse of cash advances, delayed retirement of imprest accounts and weak documentation within the public service.
Imprest, which is designed to cover routine and urgent official expenses, has often come under scrutiny in audit reports and oversight reviews over concerns relating to accountability and compliance with financial regulations.
The move is also part of broader reforms aimed at enhancing fiscal discipline, reducing leakages and ensuring value for money in government spending.
What’s being said
According to the circular, accounting officers across government institutions are required to ensure strict compliance with financial regulations governing the management and retirement of imprest accounts.
The government further directed all self-accounting ministries, extra-ministerial departments and agencies to submit detailed reports within 30 days, including records of retired 2025 imprest allocations and lists of approved imprest holders for 2026.
The circular emphasised that all imprest holders must operate dedicated bank accounts in line with the Federal Government’s electronic payment policy and submit monthly reports detailing transactions and retirement of funds.
The Accountant-General warned that the Treasury Inspectorate Department would conduct regular inspections throughout the financial year and impose sanctions on defaulting officials and institutions.
“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.
What’s next
MDAs are expected to immediately align their financial operations with the new directives and submit the required compliance reports to the Office of the Accountant-General.
Treasury inspectors will monitor implementation throughout the year, while accounting officers and expenditure controllers will be expected to ensure that procurement and imprest management processes comply fully with established regulations.
The government is also expected to continue expanding digital payment systems and strengthening treasury controls as part of ongoing public sector financial reforms.
Bottom line
The Federal Government’s decision to reduce reimbursable imprest limits and tighten expenditure controls signals a renewed push for fiscal discipline and accountability in public service. By imposing stricter oversight mechanisms and compliance requirements, the government aims to curb financial abuses, improve transparency and strengthen confidence in the management of public funds.
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