FG Tightens Spending Rules, Introduces New Limits on Government Cash Advances
The Federal Government has rolled out new measures aimed at improving financial accountability across Ministries, Departments and Agencies (MDAs), introducing stricter controls on reimbursable imprest and the management of public funds.
The directives are contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and communicated through a Treasury Circular issued by the Office of the Accountant-General of the Federation.
According to the circular dated June 3, 2026, accounting officers across the executive, legislative and judicial arms of government have been authorised to approve funds for eligible imprest holders, but within newly established spending limits.
Under the new arrangement, ministers will be entitled to a maximum reimbursable imprest of ₦700,000, while permanent secretaries and directors-general will have a ceiling of ₦500,000. Directors and heads of departments will be limited to ₦300,000, while heads of formations and other authorised imprest holders will be entitled to a maximum of ₦100,000.
The government said the policy aligns with existing financial regulations and is designed to strengthen transparency and prudent management of public resources.
In addition to the spending limits, the government has also restricted the frequency of imprest reimbursements. Reimbursements will generally be allowed once every quarter, with a maximum of two reimbursements within the same quarter only when necessary.
The circular further directed that all procurements exceeding ₦1 million must follow due contract award procedures in accordance with the Public Procurement Act and other relevant regulations.
To improve monitoring and accountability, self-accounting ministries, agencies and extra-ministerial departments have been instructed to submit detailed reports to the Office of the Accountant-General within 30 days. These reports are expected to include records of retired imprest allocations from 2025, as well as details of approved imprest holders for 2026 and their respective duty locations.
The government also mandated all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy. Monthly reports showing funds received and evidence of retirement of such funds must also be submitted.
The Accountant-General’s Office warned that routine inspections would be carried out by the Treasury Inspectorate Department throughout the year and that any violation of the regulations would attract sanctions.
According to the directive, accounting officers found to have breached the rules could lose the authority to issue imprest, while additional disciplinary measures may be applied where necessary.
The circular was sent to key government officials, including ministers, permanent secretaries, heads of agencies, service chiefs, anti-corruption agencies and other federal institutions.
Imprest refers to cash advances issued to public officers to cover routine and urgent official expenses that do not require the full procurement process. Beneficiaries are expected to provide supporting documents and retire the funds before receiving fresh approvals.
The latest reforms are part of ongoing efforts by the Federal Government to strengthen public financial management, improve transparency in government spending and reduce cases of abuse, delayed retirements and weak documentation associated with cash advances.
