FG reduces cash allowance for ministers

The Federal Government has reduced the amount of money given in advance to top public officers and ministers for official running costs.

This is part of new steps to control spending in Ministries, Departments and Agencies.

The new rule is contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele and sent out through a Treasury circular from the Office of the Accountant-General of the Federation.

Imprest refers to cash advanced to public officers to handle small or urgent official expenses, which must later be accounted for with proper records.

The circular, dated June 3, 2026, and issued by the Accountant-General, Shamseldeen Ogunjimi, gives approval powers to accounting officers across government while also fixing new spending limits for imprest holders.

Under the new structure, ministers will now get up to N700,000 as reimbursable imprest.

Permanent secretaries and directors-general are limited to N500,000.

Directors and heads of departments will receive up to N300,000, while heads of smaller units and other approved officers will not exceed N100,000.

The government said the change is part of efforts to improve control of public funds and ensure that spending follows existing financial rules.

It also tied the policy to financial regulations guiding how public money is managed and retired.

The circular also reduced how often imprest can be refunded.

Reimbursement will normally be done once every quarter, and in special cases it may be done twice within a quarter.

In addition, the government directed that any local purchase of goods or services above N1 million must go through a proper contract process in line with public procurement laws.

This is aimed at stopping informal spending outside approved procedures.

All ministries and agencies that handle their own accounts have been asked to submit reports within 30 days.

These reports are expected to show how previous imprest funds for 2025 were spent and retired, along with details of approved officers for 2026.

The government also ordered that imprest holders must operate dedicated bank accounts for official transactions. They are required to send monthly reports showing funds received and how they were spent.

The Office of the Accountant-General warned that inspection teams will carry out regular checks during the year.

It added that any violation of the rules could lead to withdrawal of imprest privileges and other sanctions against responsible officers.