The Federal Government has slashed the maximum reimbursable imprest for ministers to N700,000 and imposed stricter cash controls across all Ministries, Departments and Agencies in a bid to curb misuse of public funds.
The new limits are contained in the 2026 Annual General Imprest Warrant signed by Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. The directive was issued June 3, 2026 through a Federal Treasury Circular from the Office of the Accountant-General of the Federation, signed by Accountant-General Shamseldeen Ogunjimi.
–New imprest ceilings–
The revised framework sets hard caps for top officials and accounting officers:
– Ministers: N700,000 max reimbursable imprest
– Permanent Secretaries/Directors-General: N500,000
– Directors/Heads of Departments: N300,000
– Heads of Formations in states and other authorised holders: N100,000
The Accountant-General said the policy aligns with Financial Regulation 1003 and targets accountability, transparency, and prudent use of public resources.
–Stricter rules on cash advances–
1. Frequency capped: Standing imprests can only be reimbursed once per quarter, and not more than twice in the same quarter even when “necessary”. That ends the cycle of frequent cash drawdowns.
2. Procurement threshold: All local purchases above N1 million must go through formal contract awards, except where the Public Procurement Act allows otherwise. Imprest can no longer cover big-ticket spending.
3. Bank account mandate: Every imprest holder must run a dedicated operational bank account per the FG’s e-payment policy. Monthly returns must show credits and evidence of expenditure retirement.
4. Reporting deadline: Self-accounting MDAs must submit returns within 30 days. The returns must include retirement details for 2025 imprest and a 2026 list of approved imprest holders + locations.
–Enforcement with sanctions–
The Treasury Inspectorate Department will run routine inspections through 2026. Violators face sanctions. The circular warns that breaches can lead to withdrawal of an accounting officer’s authority to issue imprest, plus other disciplinary action.
The directive went to the Chief of Staff to the President, ministers, permanent secretaries, service chiefs, IGP, heads of agencies, anti-corruption bodies, and revenue-generating institutions.
–What imprest is — and why it matters–
Imprest is cash advanced to public officers for routine, urgent expenses that don’t require full procurement. Beneficiaries must retire advances with receipts and documents before getting more funds. Weak retirement and oversight of imprest have long been flagged by auditors as a leak in public finance.
–Context: Tightening the fiscal screws–
The cuts come as the FG pushes broader public financial management reforms under President Tinubu’s administration. Lower imprest limits, e-payment mandates, and quarterly reimbursement rules are designed to reduce cash handling, increase traceability, and force MDAs to use formal procurement for larger spending.
For ministers, dropping to N700,000 means “petty cash” is now truly petty. Anything beyond day-to-day expenses must be budgeted, contracted, and tracked — not advanced in cash.
The test will be enforcement. With the Accountant-General threatening to pull imprest authority from accounting officers who breach the rules, MDAs will face real pressure to comply.
