The Federal Government has introduced stricter financial controls governing procurement and imprest management across ministries, departments and agencies, in a move aimed at strengthening accountability and transparency in public expenditure.

Under the new framework, procurement of goods and services above ₦1 million must now be conducted strictly through formal contract awards in line with the Public Procurement Act, 2007, except where otherwise permitted by law.

The reforms were outlined in a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation (OAGF) and endorsed by Accountant-General Dr. Shamseldeen B. Ogunjimi.

The circular also introduced revised limits for the 2026 Annual General Imprest Warrant (AGIW). Ministers are now limited to ₦700,000, Permanent Secretaries and Directors-General ₦500,000, Directors and Heads of Departments ₦300,000, while other imprest holders are restricted to ₦100,000.

According to the directive, accounting officers across all arms of government must strictly operate within the approved limits, with enhanced rules governing the release, use, and retirement of public funds. Standing imprest accounts are to be replenished once per quarter, and not more than twice where operational needs justify it.

All imprest holders are required to maintain proper records and comply fully with Financial Regulations 1005 to 1012. Self-accounting MDAs must also submit detailed reports to the OAGF within 30 days, including documentation of 2025 imprest retirements and a full register of approved imprest holders for 2026.

In addition, the Federal Government has strengthened its e-payment policy by directing all imprest holders to operate dedicated bank accounts for transactions. Monthly returns on funds received and retired must also be submitted promptly to the OAGF.

To ensure compliance, the Treasury Inspectorate Department will carry out routine inspections of imprest accounts throughout the year. The circular warned that violations of the new rules will attract sanctions, including withdrawal of imprest privileges and other disciplinary actions.

The directive has been circulated to ministers, service chiefs, heads of agencies, the Central Bank of Nigeria, anti-corruption bodies and other relevant institutions for immediate implementation.