The Accountant General of the Federation, Shamseldeen Ogunjimi, has issued two major circulars introducing new thresholds for imprest and advances across Ministries, Departments and Agencies (MDAs) as part of efforts to improve transparency, accountability, and efficiency in the use of public funds in 2025.

In the first circular titled “Approval and Implementation of Year 2025 revised annual general imprest warrant,” the Federal Government approved revised imprest limits for public officials, empowering them to access and manage cash advances within clearly defined boundaries.

The second circular titled: “Implementation of revised limits of advances thresholds in line with current economic realities,” reviewed and raised the thresholds for advances granted for administrative purposes, aligning them with the present cost structure of governance.

According to the first circular, which has been sent to top government officials including ministers, heads of agencies, service chiefs, and senior government advisers, the 2025 General Imprest Warrant signed by the Minister of Finance in line with Financial Regulation No. 1003 authorizes accounting officers across all arms of government and agencies to approve disbursements to designated imprest holders but within the following ceilings:

Ministers, N700,000; Permanent Secretaries/Director-Generals N500,000; Directors and Heads of Departments N300,000; and Heads of Formations in each State and other authorized officials N100,000. Reimbursements for standing imprest are to be processed once per quarter, and not more than twice within the same quarter in exceptional cases.

In addition, all purchases or services costing above N1,000,000 must be procured through a formal contract award process as stipulated in the Public Procurement Act, 2007.

Accounting officers have also been directed to submit details of imprest expenditures from 2024, along with the list and location of entitled imprest holders for 2025, within 30 days of the issuance of the circular.

To facilitate efficient record-keeping and accountability, imprest holders must open operational bank accounts for managing these funds. Monthly returns showing disbursements and retirements must be submitted to the Office of the Accountant-General of the Federation.

The circular further warns that the Treasury Inspectorate Department will conduct regular inspections throughout the financial year. “Any violation of financial regulations may result in the withdrawal of imprest rights from the responsible officer, along with appropriate disciplinary action” the circular warned.

In the second circular, the Accountant-General announced upward revisions to the limits of advances that MDAs can grant to officials for administrative functions and special programmes.

With effect from August 1, 2025, the revised advance thresholds are as follows: Personal Advance – Not permitted; Normal/Regular Cash Advance N1,000,000; and Special Projects and Programmes Advance N10,000,000.

Under the revised rules, special advances are to be disbursed directly to eligible officers without requiring MDAs to open separate project accounts with the Central Bank. Only officers on Grade Level 10 or above are qualified to receive or manage such advances.

Officials are barred from holding multiple concurrent advances, and advances must be retired within the same year in which they were granted, either after the intended purpose has been fulfilled or upon completion of the approved project or programme. Also, no advance is to be drawn from capital votes, special funds or other non-recurrent expenditure budgets.

All unretired advances must be disclosed in the annual trial balance of each MDA, including an age analysis showing the duration of the outstanding advances.

The circular warned that failure to comply with the new guidelines will attract sanctions as provided under the existing financial regulations.

Mr. Ogunjimi explained that the revised thresholds were designed to promote fiscal discipline and allow MDAs to operate more efficiently by eliminating bottlenecks in accessing and managing official funds.

He noted that aligning disbursements with economic realities would ensure that public funds better reflect the actual cost of governance while enabling quicker service delivery.

Both circulars stressed the importance of compliance and have been dispatched to all top officials in the executive, legislative and judicial arms of government, including Nigeria’s diplomatic missions.

The measures are part of ongoing reforms within the Treasury aimed at strengthening financial management, increasing transparency, and ensuring public funds are used strictly for intended purposes. (The Nation)