The monies will go towards the execution of projects captured in the 2013 Budget.
The Federal Government on Thursday issued N400billion from the approved appropriation for capital projects in the first quarter of 2013.
The Minister of Finance and Coordinating Minister for the Economy, Ngozi Okonjo-Iweala, hinted last week in Abuja at the media briefing on the 2013 Federal Budget that the first quarter capital appropriation would be released immediately after the Federation Accounts Allocation Committee, FAAC.
Just as the meeting ended on Thursday in Abuja, a statement by the Special adviser to the Minister, Paul Nwabuikwu, said the release is to provide fresh impetus to the execution of projects captured in the 2013 Budget recently signed into law by the President, Goodluck Jonathan, after months of disagreement with the National Assembly.
According the Mr. Nwabuikwu, already N120 billion of the money released had been frontloaded to take care of the N75 billion approved for retiring bonds in line with the new debt management strategy which focuses on reducing the country’s stock and flow of debt as well as N45 billion of about N347 billion severance package approved for the PHCN workers.
Meanwhile, the FAAC meeting held on Thursday in Abuja said that about N886.40 billion from Statutory, Value Added Tax (VAT) and other revenues that accrued in the Federation Account was shared among the three tiers of government for the month of February.
The Minister of State for Finance, Yerima Ngama, said the month’s revenue allocations to the various tiers of government represented an increase of N310.94 billion, or 54.03 per cent, over the N575.46 billion shared in the preceding month.
The Accountant General of the Federation, Jonah Otunla, who gave details of the revenue accruals to the Federation Account, said about N121.41billion was transferred to the Excess Crude Account, ECA, to boost the cumulative new balance to about $8.061billion.
According to Mr. Otunla, the gross revenue of N571.67 billion received for the month was lower than the N651.26 billion received in the previous month by N79.58 billion, just as oil production continued to be hampered by incessant incidents of pipeline vandalism at Bonny, Forcados and Brass oil export Terminals.
The AGF said N445.84 billion was shared under statutory allocation while VAT distributions amounted to N62.707 billion and N173.595 billion used to augment the shortfall in revenue between what was budgeted and the amount actually realised.
Further details of the revenue profile and distributions showed that N35.549 billion was provided for Subsidy Reinvestment and Empowerment Programme, SURE-P, apart from N7.617billion received as refund for debt owed the federation account by the NNPC as well as arrears of N156.76 billion for the month of January as a result of the late implementation of the budget.
According to Mr. Otunla, out of the N445.26 billion statutory allocation, the federal government took N209.86 billion, representing 52.68 per cent while the 36 states got N106.44 billion, or 26.72 per cent, and the 774 local government areas N82.06 billion, or 20.6 per cent.
Similarly, he said N47.48 billion was shared to the nine oil producing states based on the 13 per cent principle of derivation while VAT distributions totalling N60.19 billion showed the Federal Government taking N9.03 billion, or 15 per cent, compared to the states’ N30.1 billion, which accounted for 50 per cent of the earnings and local governments N21.07 billion.