FG mandates procurement process for all purchases above N1m across MDA’s
The federal government has introduced stricter controls on the use of public funds, imposing new limits on reimbursable imprest and tightening oversight of cash advances across ministries, departments and agencies (MDAs).
The measures are contained in the 2026 Annual General Imprest Warrant signed by Finance Minister Taiwo Oyedele and communicated through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation.
In the circular dated 3 June 2026, the Accountant-General of the Federation, Shamseldeen Ogunjimi, authorised accounting officers across the executive, legislative and judicial arms of government to approve funds for eligible imprest holders, while setting fresh spending ceilings and compliance requirements.
Under the new framework, ministers will be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will be limited to N500,000. Directors and heads of departments may access up to N300,000, while heads of formations in states and other authorised holders will be restricted to N100,000.
The Office of the Accountant-General said the measures were designed to strengthen accountability and ensure prudent management of public resources in line with Financial Regulation 1003.
The circular also introduced tighter restrictions on the frequency of reimbursements, stating that standing imprest should ordinarily be reimbursed once every quarter and, where necessary, not more than twice within the same period.
In a further move to reinforce financial discipline, the government directed that all local procurements of stores and services exceeding N1m must be conducted through contract awards in accordance with the Public Procurement Act and other applicable regulations.
The directive stressed the need for strict adherence to rules governing the management and retirement of imprest accounts, amid longstanding concerns over weak documentation, delayed retirement of advances and misuse of public funds.
To strengthen monitoring, all self-accounting ministries, extra-ministerial departments and agencies have been instructed to submit returns to the Accountant-General within 30 days. The returns are expected to include details of the retirement of 2025 imprest allocations, as well as lists of approved imprest holders for 2026 and their duty locations.
The government also directed imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy. Monthly reports detailing funds paid into the accounts and evidence of retirement of the advances must be forwarded to the Office of the Accountant-General.
Ogunjimi warned that the Treasury Inspectorate Department would carry out routine inspections throughout the year and enforce sanctions where violations are detected.
According to the circular, any breach of the regulations governing imprest accounts could result in the withdrawal of an accounting officer’s authority to issue imprest, alongside other disciplinary measures.
The directive was circulated to senior government officials, including ministers, permanent secretaries, heads of extra-ministerial agencies, service chiefs, the Inspector-General of Police, chairmen of federal commissions and anti-corruption agencies, as well as heads of revenue-generating institutions.
Imprest is a cash advance granted to public officers to meet routine and urgent official expenses that may not require the full procurement process. Under existing financial regulations, beneficiaries must account for all spending with supporting documentation and retire advances before obtaining fresh approvals.
The latest measures form part of broader public financial management reforms through which the government has expanded electronic payment systems, strengthened treasury controls and sought to improve transparency, accountability and value for money in public expenditure.
The new circular signals a renewed effort to tighten oversight of cash advances and enforce stricter compliance with financial regulations across the federal public service.