The Federal Government has announced a sharp reduction in the reimbursable imprest available to ministers, setting a new ceiling of N700,000 as part of a broader push to tighten control over public expenditures.
This directive is contained in the 2026 Annual General Imprest Warrant, which was signed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.
The warrant, which took effect this week, was circulated through a Federal Treasury Circular from the Office of the Accountant-General of the Federation.
Under the new structure, permanent secretaries and directors-general are now limited to N500,000, while directors and heads of departments can access up to N300,000. Heads of formations in the states and other authorised imprest holders have been restricted to a ceiling of N100,000.
The government has also moved to curb the frequency of cash advances. According to the circular, reimbursements for standing imprest are now permitted only once per quarter, with a strict exception allowing a second reimbursement only when a genuine and urgent need is proven.
In a further check on spending, the government reiterated that any local procurement of stores or services exceeding N1 million must be conducted through formal contract awards, in line with the Public Procurement Act. This provision closes a loophole where multiple imprest requests were previously used to bypass contract thresholds.
To strengthen oversight, all self-accounting ministries, departments, and agencies have been directed to submit detailed returns to the Accountant-General within 30 days. These returns must include full retirement records of all 2025 imprest allocations, as well as a comprehensive list of all approved imprest holders for 2026 and their respective locations.
The circular also ordered all imprest holders to operate dedicated operational bank accounts compliant with the government’s electronic payment policy. Monthly reports showing funds paid into these accounts and evidence of retirement must now be submitted to the Treasury.
The Accountant-General’s office has warned that the Treasury Inspectorate Department will conduct routine inspections throughout the financial year. Any violation of the new imprest regulations will result in the withdrawal of imprest-issuing rights from the offending accounting officer, alongside additional sanctions.
The directive has been formally addressed to senior government functionaries, including the Chief of Staff to the President, ministers, service chiefs, the Inspector-General of Police, and heads of anti-corruption.
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