Procurement of goods and services above ₦1,000,000 must now be carried out strictly through contract awards in line with the Public Procurement Act of 2007, except where otherwise provided by law.

The Federal Government has also introduced new limits for imprest payments under the 2026 Annual General Imprest Warrant (AGIW), signed by the Minister of Finance and Coordinating Minister of the Economy in line with Financial Regulation 1003, with Ministers allowed ₦700,000, Permanent Secretaries and Directors-General ₦500,000, Directors and Heads of Departments ₦300,000, and Heads of formations and other approved imprest holders ₦100,000.

This new financial framework was contained in a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation (OAGF) and endorsed by the Accountant-General of the Federation, Dr. Shamseldeen B. Ogunjimi.

According to the circular, Accounting Officers across the three arms of government and extra-ministerial departments are expected to strictly operate within the approved imprest limits, with clear rules guiding the release and retirement of public funds to improve accountability and transparency in government spending.

It stated that reimbursement of any standing imprest shall normally be done once in a quarter and must not exceed twice in a quarter where necessary, depending on operational demands. All imprest holders are required to maintain proper records and ensure full compliance with Financial Regulations 1005 to 1012 in the management of public funds.

The circular also directed that self-accounting ministries, departments and agencies must submit detailed reports to the Office of the Accountant-General within 30 days. The reports are expected to include documentation of vouchers used in retiring 2025 imprest funds as well as a comprehensive list of approved imprest holders and their locations for the 2026 financial year.

In addition, the Federal Government has introduced new requirements under its e-payment policy, directing all imprest holders to open operational bank accounts for imprest transactions. Monthly returns on funds received and retired must also be submitted to the Accountant-General’s office without delay.

To ensure strict compliance, the Treasury Inspectorate Department will conduct routine inspections of imprest accounts throughout the year. The circular warned that any breach of the financial rules will attract sanctions, including withdrawal of the right to operate imprest accounts from defaulting officers, alongside other disciplinary measures.

The circular was distributed to ministers, service chiefs, heads of agencies, the Central Bank of Nigeria, anti-corruption bodies and other relevant federal institutions for immediate implementation. (The Nation)

Update news