FG Sets New Imprest Limits for Ministers, Top Officials in 2025 Fiscal Reforms

FG Sets New Imprest Limits for Ministers, Top Officials in 2025 Fiscal Reforms

The Federal Government has issued new financial guidelines for Ministries, Departments, and Agencies (MDAs), setting quarterly imprest ceilings at ₦700,000 for ministers and ₦500,000 for permanent secretaries and directors-general. This development, outlined in two circulars from the Accountant-General of the Federation, Mr. Shamseldeen Babatunde Ogunjimi, is part of broader efforts to promote transparency, accountability, and efficiency in public fund management.

According to the first circular titled *“Approval and Implementation of Year 2025 Revised Annual General Imprest Warrant”*, the revised thresholds empower designated officials to access and manage cash advances within clearly defined limits. Under the new structure, directors and heads of departments are entitled to ₦300,000, while heads of formations in each state and other authorised officials may access up to ₦100,000. Reimbursements for standing imprests will be processed once per quarter, with a second reimbursement permitted only in exceptional cases.

The circular, endorsed by the Minister of Finance in accordance with Financial Regulation No. 1003, authorises accounting officers to disburse funds within these limits and mandates that purchases or services exceeding ₦1,000,000 must follow a formal contract award process, as stipulated in the Public Procurement Act of 2007. Copies of the warrant have been distributed to ministers, heads of agencies, service chiefs, and senior government advisers.

Accounting officers have been directed to submit comprehensive details of imprest expenditures for 2024 and provide the list and locations of authorised imprest holders for 2025 within 30 days of the circular’s release. Imprest holders must also maintain operational bank accounts and submit monthly reports to the Office of the Accountant-General of the Federation. The Treasury Inspectorate Department will conduct regular inspections to ensure compliance, with any violations resulting in withdrawal of imprest rights and potential disciplinary action.

In a second circular titled *“Implementation of Revised Limits of Advances Thresholds in Line with Current Economic Realities”*, the government introduced new advance limits effective from August 1, 2025. Personal advances are no longer permitted, while regular cash advances are capped at ₦1,000,000 and advances for special projects or programmes are limited to ₦10,000,000. Only officers on Grade Level 10 and above are eligible to manage these funds. Advances must be retired within the same fiscal year, and officials are barred from holding multiple concurrent advances. Additionally, no advances may be drawn from capital votes or special non-recurrent budgets.

All unretired advances must be disclosed in the annual trial balance of each MDA, including an age analysis showing the length of time outstanding. Failure to adhere to the revised guidelines will result in sanctions as provided under current financial regulations.

Mr. Ogunjimi emphasised that the revised thresholds are intended to foster fiscal discipline and enhance operational efficiency across MDAs. He noted that aligning fund disbursement with prevailing economic conditions will ensure better resource allocation and more responsive service delivery.

The circulars, which have been distributed to officials across the executive, legislative, and judicial arms of government, including Nigeria’s diplomatic missions, form part of ongoing Treasury reforms aimed at reinforcing financial governance and safeguarding public funds for their intended purposes.