ABUJA — The Federal Government has announced a sweeping overhaul of its expenditure policies for Ministries, Departments, and Agencies (MDAs), imposing strict new limits on "reimbursable imprest" cash advances used by public officials for routine and urgent operational expenses.
The directives, outlined in the 2026 Annual General Imprest Warrant, were formalized in a treasury circular issued by the Office of the Accountant-General of the Federation on June 3, 2026. This move represents the latest effort by the administration to tighten the oversight of public funds and curb potential financial leakage.
New Spending Ceilings
Under the new policy, the government has established specific caps for fund reimbursements to ensure standardized spending across the federal public service:
• Ministers: N700,000
• Permanent Secretaries and Directors-General: N500,000
• Directors and Heads of Departments: N300,000
• Heads of Formations/Other Authorized Holders: N100,000
The government has further restricted the frequency of these reimbursements, mandating that they occur no more than once per quarter, with a maximum of twice in rare, urgent circumstances.
Tightening Procurement and Oversight
Beyond the reduction of cash advances, the government is reinforcing compliance with national procurement laws. The circular explicitly directs that any local procurement of goods or services exceeding N1,000,000 must be handled through formal contract awards, rather than using imprest funds.
To ensure transparency, the Accountant-General, Shamseldeen Ogunjimi, has mandated that all self-accounting MDAs submit comprehensive returns within 30 days. These returns must detail the retirement of 2025 allocations and provide a verified list of all 2026 imprest holders. Furthermore, all imprest holders are now required to operate dedicated bank accounts in line with the government’s electronic payment policy, with monthly reporting obligations to the Treasury.
Accountability and Sanctions
The Office of the Accountant-General warned that the Treasury Inspectorate Department will conduct routine, unannounced inspections throughout the financial year. Officials found in breach of these regulations face severe consequences, including the immediate withdrawal of the authority to issue imprest and further disciplinary sanctions.
For years, audit reports have flagged the misuse of imprest accounts, citing weak documentation and the delayed retirement of advances as systemic weaknesses in Nigeria’s financial management. By implementing these caps and digitized reporting requirements, the government aims to close legal loopholes that have historically allowed for the misappropriation of public resources.
The directive has been circulated to all high-ranking officials, including the Chief of Staff to the President, Service Chiefs, the Inspector-General of Police, and the heads of all revenue-generating agencies, signaling a centralized push for fiscal discipline across the three arms of government.
