The Federal Government has introduced stricter spending limits for public officials, placing a cap of ₦700,000 per quarter on imprest allocations for ministers, and ₦500,000 for permanent secretaries and directors-general.
This adjustment comes through two circulars issued by the Accountant-General of the Federation, Mr Shamseldeen Babatunde Ogunjimi, as part of renewed efforts to tighten financial discipline across Ministries, Departments and Agencies (MDAs).
A circular titled Approval and Implementation of Year 2025 Revised Annual General Imprest Warrant sets out fresh guidelines on how cash advances should be disbursed and managed by public officers. It grants accounting officers the authority to approve spending within clearly defined ceilings, following Financial Regulation No. 1003.
The memo details that directors and departmental heads will receive a maximum of ₦300,000, while state formation heads and other authorised officers are limited to ₦100,000.
“Reimbursements for standing imprests must be processed once per quarter,” the circular states, adding that “in exceptional cases, a second reimbursement may be permitted within the same quarter.”
Officials were also warned that all purchases or services exceeding ₦1 million must go through formal procurement channels as outlined in the Public Procurement Act, 2007.
Ogunjimi also directed MDAs to submit detailed records of imprest expenses for 2024 and provide an updated list of entitled holders for 2025 within 30 days.
“To facilitate efficient record-keeping and accountability, imprest holders must open operational bank accounts for managing these funds,” the circular reads. “Monthly returns showing disbursements and retirements must be submitted to the Office of the Accountant-General of the Federation.”
Officials were further notified that Treasury Inspectorate teams will carry out routine checks throughout the year to enforce compliance.
The second circular, titled Implementation of Revised Limits of Advances Thresholds in Line with Current Economic Realities, raises the thresholds for administrative and project-related advances. The changes take effect from 1 August 2025.
The breakdown is as follows:
Personal Advance: Not allowed
Normal/Regular Cash Advance: ₦1,000,000
Special Projects and Programmes Advance: ₦10,000,000
“Only officers on Grade Level 10 and above can manage such advances,” Ogunjimi noted. “Special advances will be released directly to qualified officials, without requiring MDAs to open separate project accounts with the Central Bank.”
Officers are barred from holding multiple concurrent advances. Every advance must be retired within the year of disbursement, either upon completion of the project or fulfilment of its purpose.
“No advance should be drawn from capital votes, special funds or any non-recurrent expenditure,” the circular added. “All unretired advances must be listed in the annual trial balance of each MDA, complete with an age analysis.”
Ogunjimi stressed that the reforms are meant to reflect current economic realities and ensure that public funds are managed more efficiently. He warned that “non-compliance will attract sanctions under the existing financial regulations.”
