By By Elizabeth Ugbo
The Federal Government has introduced new imprest limits and stricter financial controls for Ministries, Departments, and Agencies (MDAs) in 2026. The measures were announced on June 3, 2026, through a Federal Treasury Circular signed by Accountant-General of the Federation, Shamseldeen Ogunjimi. The directive applies to the executive, legislative, and judicial arms of government. It aims to strengthen accountability, improve expenditure monitoring, and prevent misuse of public funds. The Office of the Accountant-General issued the guidelines following approval from the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
New Reimbursable Imprest Limits Announced
The government has set new ceilings for reimbursable imprest across federal institutions.
Under the revised framework:
- Ministers can access a maximum reimbursable imprest of N700,000.
- Permanent Secretaries and Directors-General are limited to N500,000.
- Directors and Heads of Departments can receive up to N300,000.
- Heads of formations and other authorised holders are restricted to N100,000.
According to the circular, the limits align with Financial Regulation 1003 and support prudent management of public resources.
The circular stated:
“All Accounting Officers in the three arms of government, including Ministries, Extra-Ministerial Offices and Agencies, are hereby authorised to approve funds to eligible imprest holders.”
Government Restricts Frequency of Imprest Reimbursements
The Federal Government has also introduced tighter controls on imprest reimbursements.
Under the new rules, standing imprest accounts can receive reimbursement once every quarter under normal circumstances.
However, reimbursement may occur twice in a quarter when justified.
The circular stated:
“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 measure seeks to improve budget planning and reduce unnecessary requests for cash advances.
Procurement Rules Tightened for Spending Above N1 Million
The government has directed all accounting officers and expenditure controllers to follow formal procurement procedures for purchases above N1 million.
According to the directive, MDAs must process such purchases through contract awards in line with the Public Procurement Act.
The circular noted:
“All local procurement of stores and services costing above N1,000,000 shall be made only through the award of contracts, except as otherwise provided by the Public Procurement Act.”
The policy aims to promote transparency, competition, and compliance in government procurement.
MDAs Ordered to Submit Financial Returns
To strengthen oversight, the government has directed all self-accounting ministries, extra-ministerial departments, and agencies to submit detailed returns within 30 days.
The returns must include:
- Retirement records of imprest allocations granted in 2025.
- Lists of approved imprest holders for 2026.
- Operational locations of all authorised holders.
Officials expect the requirement to improve record-keeping and enhance monitoring of public expenditure.
Dedicated Bank Accounts Now Mandatory
The Federal Government has instructed all imprest holders to operate dedicated operational bank accounts.
The directive supports the government’s electronic payment policy.
In addition, imprest holders must submit monthly reports showing:
- Funds paid into the accounts.
- Documentary evidence of retired funds.
The measure will reduce cash transactions and strengthen digital financial management systems.
Treasury Inspectorate to Conduct Routine Inspections
The Treasury Inspectorate Department will conduct regular inspections throughout the financial year.
Inspectors will assess compliance with imprest regulations and review the management of cash advances across MDAs.
The Accountant-General warned that violations would attract sanctions.
According to the circular:
“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.”
Government Targets Stronger Accountability
The circular was sent to key government officials and institutions. Recipients include ministers, permanent secretaries, service chiefs, heads of agencies, anti-corruption bodies, and revenue-generating institutions.
The wide distribution highlights the government’s commitment to enforcing the new rules across the federal public service.
What Is Imprest?
Imprest is a cash advance given to public officers for routine and urgent official expenses that do not require full procurement procedures.
Nigeria’s Financial Regulations require officers to account for all imprest spending with supporting documents. They must also retire previous advances before obtaining new approvals.
Over the years, audit reports have highlighted concerns about poor documentation, delayed retirements, and misuse of public funds.
Consequently, successive administrations have introduced reforms to strengthen financial controls. These reforms include the Treasury Single Account (TSA), electronic payment systems, and stricter compliance requirements for MDAs.
The latest measures represent another step toward improving transparency, accountability, and efficient management of public resources.
