The FG tightened control of public funds, capping ministerial advances at N700,000

The Federal Government has implemented stricter financial control measures across Ministries, Departments and Agencies (MDAs), introducing new limits on authorized cash withdrawals and strengthening compliance requirements aimed at curbing misuse of public funds.

The reforms are contained in the 2026 Annual General Order approved by the Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, and communicated through a Treasury Circular issued by the Office of the Accountant General of the Federation.

The directive, dated June 3, 2026, authorizes accounting officials across the executive, legislative and judicial branches to approve imprest payments for eligible officials, while imposing spending limits and stricter reporting obligations.

Under this new framework, senior government officials will work within clear reimbursement boundaries. Ministers will now be entitled to a maximum reimbursable allowance of N700,000, while permanent secretaries and directors-general will be limited to N500,000. Directors and heads of departments are entitled to up to N300,000, while formation heads and other approved officers will be limited to N100,000.

The Accountant General’s Office said the policy is in line with Financial Regulation 1003 and is part of a broader effort to promote accountability, transparency and wise management of government resources.

The circular states, “All Accounting Officials in the three government agencies, including Ministries, Extra-Ministerial Offices, and Institutions, are hereby authorized to approve funds to eligible fund holders.”

However, he added that “the limit of reimbursable remuneration is” N700,000 for ministers, N500,000 for permanent secretaries and directors general, N300,000 for directors and heads of departments, and N100,000 for heads of formations and other authorized holders.

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In a move designed to strengthen spending controls, the government also imposed limits on how often officials can seek reimbursement for fixed costs.

“The frequency of reimbursement for standing imprest fees is usually once a quarter and should not be more than twice a quarter if necessary,” the circular said.

The new guidance also seeks to discourage the use of imprest accounts for large purchases by directing government agencies to comply with procurement regulations for higher value transactions.

“All procurement of local shops and services at a cost above N1,000,000 will only be done through contract award, unless otherwise provided by the Public Procurement Act,” the circular said.

The directive emphasizes that all accounting officers and expenditure controllers must strictly comply with existing financial regulations governing the issuance, management and retirement of imprest funds.

To improve oversight and accountability, all independent accounting ministries, departments and extra-ministerial agencies have been instructed to submit detailed reports to the Accountant General’s Office within 30 days of the issuance of the circular.

The report is expected to include evidence showing how imprest allocations for 2025 were discontinued, as well as a complete list of authorized imprest holders for 2026 and their respective assignment locations.

As part of the reforms, imprest fund holders are also required to operate special operational bank accounts in line with the Federal Government’s electronic payments policy.

The circular requires monthly submissions detailing the funds credited to the account and documentary evidence of how the advance was discontinued.

The Accountant General warned that compliance will be closely monitored throughout the financial year through regular inspections by the Financial Inspectorate Department.

“Any violation of regulations in the operation of imprest accounts will result in the withdrawal of the right to issue any impression by the affected accounting officer, and appropriate sanctions will be applied,” the circular said.

The directive was circulated to various high-ranking government officials and institutions, including the President’s Chief of Staff, ministers, permanent secretaries, service heads, Inspector General of Police, heads of extra-ministerial agencies, anti-corruption agencies, federal commissions, and revenue-generating institutions.

Imprest functions as a cash advance mechanism that allows public officials to meet urgent and routine official expenditures that may not require a full procurement process. However, under Nigerian financial regulations, any imprest expenditure must be supported by appropriate documentation and fully terminated before new approval can be granted.

This latest policy is part of the Federal Government’s ongoing efforts to strengthen public financial management, increase transparency and eliminate loopholes that have historically contributed to poor documentation, delayed withdrawals and misuse of public resources.

With the Treasury Single Account, electronic payments system and other fiscal reforms in place, the new imprest guidelines represent another step in the government’s efforts to enforce stricter financial discipline across the federal public service and ensure greater accountability in public spending.