Nigeria to Curb Public Spending With New Rules

The Nigerian authorities have introduced stricter controls on public spending, capping cash advances for officials and limiting how often they can be replenished, according to a circular issued.

The new measures target ministries, departments and agencies across the national government.

Finance Minister Taiwo Oyedele signed the 2026 Annual General Imprest Warrant, which the Office of the Accountant-General of the Federation conveyed through a circular dated June 3.

Accountant-General Shamseldeen Ogunjimi authorised the changes.

Ministers can now draw a maximum reimbursable imprest of 700,000 naira (about $1,500), the circular said.

Permanent secretaries and directors-general face a limit of 500,000 naira.

The ceiling drops to 300,000 naira for directors and department heads.

For state-based formation heads and other authorised holders, the cap stands at 100,000 naira.

Authorities said the adjustments align with Financial Regulation 1003 and form part of a broader push for accountability in managing public money.

The government also moved to curb frequent replenishment of imprest accounts.

“The frequency of reimbursement of any standing imprest shall normally be once in a quarter and shall not exceed twice in a quarter where the need arises,” the circular read.

For purchases exceeding one million naira, the circular mandates compliance with procurement laws.

“All local procurement of stores and services costing above N1,000,000 shall be made only through the award of contracts, except as otherwise provided by the Public Procurement Act,” it stated.

Self-accounting entities now have 30 days to submit returns to the Accountant-General’s office.

The submissions must cover how 2025 imprest funds were retired, along with lists of approved imprest holders for 2026 and their locations.

The government further ordered imprest holders to maintain dedicated operational bank accounts in line with its electronic payment policy.

Monthly reports showing deposits into those accounts and proof of retirement must also be submitted to the Accountant-General’s office.

The Treasury Inspectorate Department plans routine checks throughout the year, with sanctions for any violations, the Accountant-General warned.

“Any breach of the regulations in the operation of imprest accounts shall lead to the withdrawal of the right to issue any imprest by the affected accounting officer, and appropriate sanctions shall be applied accordingly,” the circular stated.