FG Tightens Spending Controls, Slashes Imprest Limits for Ministers and Top Officials

The Federal Government has introduced stricter financial control measures aimed at enhancing accountability and curbing unnecessary expenditure across Ministries, Departments and Agencies (MDAs), including significant reductions in reimbursable imprest limits for senior public officials.

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, as part of ongoing efforts to strengthen public financial management and ensure prudent use of government resources.

Details of the directive were communicated through a Federal Treasury Circular dated June 3, 2026, and signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi.

What Is an Imprest?

An imprest is a cash advance provided to public officers to cover routine or urgent official expenses that may not require the conventional procurement process. Such funds are expected to be properly documented, supported with receipts and retired before additional approvals can be granted.

Government financial regulations require strict accountability for all imprest expenditures to prevent abuse and ensure transparency in the management of public funds.

New Spending Limits for Public Officials

Under the revised framework, ministers can now access a maximum reimbursable imprest of ₦700,000.

Permanent secretaries and directors-general have been assigned a ceiling of ₦500,000, while directors and heads of departments are limited to ₦300,000.

For heads of government formations in states and other approved officers, the maximum allowable imprest has been fixed at ₦100,000.

According to the Office of the Accountant-General, the revised limits were introduced in line with Financial Regulation 1003 and are intended to promote stricter oversight of government spending.

Restrictions on Reimbursements

In addition to lowering spending limits, the Federal Government has also tightened rules governing the frequency with which imprests can be replenished.

Under the new directive, reimbursements are generally restricted to once every quarter.

However, in exceptional circumstances where additional funding becomes necessary, replenishment may be approved a second time within the same quarter, but no more than twice during that period.

“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.

Procurement Above ₦1 Million Must Follow Due Process

The government has further directed accounting officers to ensure that any procurement of goods or services valued above ₦1 million is handled through the formal contract award process rather than through cash advances or imprest arrangements.

The measure aligns with provisions of the Public Procurement Act and is designed to strengthen transparency and reduce opportunities for financial irregularities.

Officials were reminded that procurement procedures must be strictly followed whenever spending exceeds the approved threshold.

MDAs Required to Submit Accountability Reports

To ensure compliance with the new regulations, all self-accounting ministries, departments and agencies have been directed to submit detailed returns to the Office of the Accountant-General within 30 days.

The reports must provide evidence showing how imprest allocations for 2025 were retired and fully accounted for.

Agencies are also required to submit updated lists of approved imprest holders for 2026, including their official designations and locations.

Dedicated Accounts and Monthly Reporting

Under the new framework, all imprest holders must operate dedicated bank accounts that comply with the government’s electronic payment policy.

They are also required to submit monthly reports detailing funds received, expenditures incurred and retirements made.

The government believes the additional reporting requirements will improve monitoring and provide greater visibility into how public funds are utilised.

Treasury Inspectorate to Conduct Monitoring

The Accountant-General disclosed that the Treasury Inspectorate Department would carry out periodic compliance checks throughout the financial year to ensure adherence to the regulations.

Public officers found violating the guidelines could face disciplinary measures, including the withdrawal of their authority to issue or manage imprests, alongside other administrative sanctions.

Directive Sent to Top Government Officials

The circular has been circulated to key officials across the executive, legislative and judicial arms of government.

Recipients include the Chief of Staff to the President, ministers, permanent secretaries, service chiefs, heads of anti-corruption agencies and other senior government functionaries.

The latest measures form part of broader efforts by the Federal Government to improve fiscal discipline, strengthen accountability mechanisms and ensure that public resources are managed more efficiently amid growing demands for prudent governance and responsible spending.