FG cuts ministers’ reimbursable imprest to N700,000

The Federal Government has introduced stricter financial control measures across Ministries, Departments and Agencies (MDAs), reducing the maximum reimbursable imprest for ministers to N700,000 and imposing tighter oversight on the use of public funds.

The new directives are contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and conveyed through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation.

The circular, dated June 3, 2026, and signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi, authorises accounting officers across the executive, legislative and judicial arms of government to approve imprest funds for eligible officers, while setting new spending limits and compliance requirements.

Under the revised framework, ministers will be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will have a ceiling of N500,000. Directors and heads of departments are limited to N300,000, while heads of formations in states and other authorised imprest holders can access up to N100,000.

According to the Office of the Accountant-General, the policy is in line with Financial Regulation 1003 and is aimed at promoting accountability, transparency and prudent management of public resources.

The circular also places restrictions on the frequency of imprest reimbursements. It stipulates that standing imprests should ordinarily be reimbursed once every quarter and, where necessary, not more than twice within the same quarter.

In addition, accounting officers and expenditure controllers have been directed to ensure that all local procurement of goods and services exceeding N1 million is processed through contract awards, except where otherwise permitted under the Public Procurement Act.

The government further stressed the need for strict compliance with regulations governing the management and retirement of imprest accounts.

To enhance monitoring, all self-accounting ministries, extra-ministerial departments and agencies have been instructed to submit returns to the Accountant-General within 30 days of the circular. The reports are expected to include details of the retirement of 2025 imprest allocations, as well as lists of approved imprest holders for 2026 and their respective locations.

The circular also mandates all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy. Monthly reports showing funds credited to the accounts and evidence of retirement of expenditures must be submitted to the Office of the Accountant-General.

The Accountant-General warned that the Treasury Inspectorate Department would conduct routine inspections throughout the year and enforce sanctions against violators.

It stated that any breach of regulations governing the operation of imprest accounts could result in the withdrawal of an accounting officer’s authority to issue imprest, alongside other disciplinary measures.

The directive was circulated to top government officials, including the Chief of Staff to the President, ministers, permanent secretaries, heads of extra-ministerial agencies, service chiefs, the Inspector-General of Police, chairmen of federal commissions and anti-corruption agencies, as well as heads of revenue-generating institutions.

Imprest refers to cash advances granted to public officers for routine and urgent official expenses that do not require the full procurement process. Under existing financial regulations, beneficiaries are required to account for all expenditures with supporting documents and retire advances before receiving additional approvals.

The latest measures form part of ongoing reforms to strengthen public financial management, improve transparency and curb the misuse of government funds across the federal public service.