FG cuts ministers’ advances to N700,000, tightens spending controls – THIS END

By Victor Osula, Abuja

The Federal Government has reduced the maximum amount of repayable advances available to ministers to 700,000 naira and introduced tighter controls on the use of public funds as part of efforts to strengthen financial discipline among ministries, departments and agencies (MDAs).

The new measures are contained in the 2026 General Fund Annual Fund Mandate signed by the Minister of Finance and Coordinating Minister for 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, authorizes accountants across government to approve funds for eligible advance holders, while setting new spending limits and compliance requirements.

According to the directive, ministers are entitled to a maximum repayable advance of N700,000, while permanent secretaries and director generals are limited to N500,000.

Directors and heads of departments can access up to N300,000, while heads of formations in states and other authorized holders are limited to N100,000.

The government has also reduced the frequency of repayments, saying that permanent advances should normally be repaid once a quarter and no more than twice in the same quarter if necessary.

In a move to improve transparency, all local procurement of goods and services exceeding $1 million must be conducted through contract awards in line with the Public Procurement Law, unless otherwise required by law.

The MDAs have also been directed to submit to the Accountant General, within 30 days, details of advance payments withdrawn for 2025 and approved advance holders for 2026. Additionally, advance holders must maintain dedicated bank accounts and submit monthly reports on funds received and withdrawn.

The Department of Treasury Inspectorate will conduct routine inspections throughout the year, while violations could result in sanctions, including the revocation of an accountant’s authority to issue advance payments.