The Federal Government has unveiled stricter financial control measures for Ministries, Departments and Agencies (MDAs), introducing new limits on reimbursable imprest and tighter monitoring mechanisms aimed at improving accountability in the management of public funds.
The new guidelines are contained in the 2026 Annual General Imprest Warrant approved by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and communicated through a Treasury Circular issued by the Office of the Accountant-General of the Federation (OAGF).
The circular, signed by Accountant-General Shamseldeen Ogunjimi and dated June 3, 2026, authorises accounting officers across federal institutions to grant imprest to eligible officials while prescribing spending ceilings and stricter reporting obligations.
Under the revised framework, ministers may access a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general are limited to N500,000. Directors and heads of departments can receive up to N300,000, while heads of formations and other authorised officers are restricted to N100,000.
The OAGF said the policy is designed to reinforce prudent financial management and ensure compliance with existing public finance regulations.
In a significant shift, the government has also restricted how frequently imprest accounts can be replenished.
According to the directive, reimbursements will ordinarily be permitted once every quarter and, under exceptional circumstances, may not exceed two reimbursements within the same quarter.
The measure is expected to reduce excessive cash advances and strengthen oversight of government spending.
The circular further directed all accounting officers and expenditure controllers to comply strictly with procurement regulations.
It stated that any local procurement of goods or services exceeding N1 million must be processed through formal contract awards, except where exemptions are provided under the Public Procurement Act.
The government said the move is intended to curb abuse of imprest accounts and prevent the use of cash advances to circumvent procurement procedures.
To improve transparency, all self-accounting ministries, agencies and extra-ministerial departments have been instructed to submit detailed returns to the Office of the Accountant-General within 30 days.
The reports must include evidence of how imprest allocations for 2025 were retired, as well as updated records of approved imprest holders and their respective duty locations for the 2026 fiscal year.
In addition, all imprest holders are required to maintain dedicated operational bank accounts in line with the Federal Government’s electronic payment policy.
They must also submit monthly reports showing funds received, expenditures incurred and evidence of retirement of advances.
The Accountant-General warned that compliance would be closely monitored through routine inspections by the Treasury Inspectorate Department.
Officials found to have violated the regulations risk losing the authority to issue or manage imprest accounts, alongside other administrative sanctions.
The directive was circulated to top government officials, including ministers, permanent secretaries, heads of agencies, service chiefs, the Inspector-General of Police, anti-corruption agencies and other federal institutions.
Imprest serves as a cash advance mechanism for routine and urgent official expenses that do not require the full procurement process. However, holders are expected to account for every expenditure and retire advances before receiving additional funds.
The latest reforms form part of broader efforts by the Federal Government to strengthen public financial management, improve transparency and ensure greater value for money in the use of public resources.
