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Bola Tinubu declines assent to two bills passed by the National Assembly

Citing “fundamental defects” and “inconsistencies with existing financial and constitutional provisions”, president Bola Tinubu declined to assent to two Bills earlier passed by the National Assembly.

In the letter to the president of the senate and read by Senator Godswill Akpabio, President Tinubu said  the Nigerian Institute of Transport Technology (Establishment) Bill, 2025  had several clauses that conflicted with extant laws and posed risks of financial abuse if allowed to stand.

According to the president,  “Under Section 58(4) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), I hereby convey to the Senate my decision to decline assent to the Nigerian Institute of Transport Technology Establishment Bill, 2025,” the President wrote.

He further observed that Section 18(4a) of the proposed law sought to expand the institute’s funding sources to include one percent of every import and export levy from Nigeria, a provision he said was inserted without the approval of the Federal Executive Council.

Such a levy, especially when the institute was already to be funded by the Federal Government, the president explained,  would create  “a duplication of revenue sources and unnecessary financial burden.”

The President further faulted Section 21(2) of the bill, which empowers the institute to borrow funds or obtain overdrafts without the consent of the President, except where the amount exceeds ₦50 million.

“In the extant Acts, borrowing can only be done with the approval of the President. The removal of presidential consent has not been explained or justified. This could be abused, as the institute may request to borrow ₦50 million or less repeatedly to avoid approval,” Tinubu warned, describing the clause as one that could “lead to serious financial abuse.”

Continuing, President Tinubu said Sections 23 and 24(5) of the bill contained contradictions regarding how the institute’s funds could be managed or invested, however observed that while the institute is to be funded primarily through federal appropriations, the bill permits it to invest its surplus funds, a move inconsistent with public finance principles, since agencies funded by government appropriations typically do not generate surpluses.

Tinubu said that Section 18(2) of the proposed law also created confusion by allowing institute funds to be used for investment purposes, contrary to the section’s stated objective of promoting the institute’s core functions, adding, “The provision allowing the institute to invest its funds in securities approved by the minister contradicts the section that requires funds to be applied strictly toward the promotion of the institute’s objectives.”

In another letter, President Tinubu also declined assent to the National Assembly Library Fund because its provision for funding will set unsustainable precedents.

In his response, Akpabio who hailed the President for the observations, said that the relevant committees will review the bills to address areas of concern.

Meanwhile, President Tinubu has signed two bills, The Nigeria Police Force Training Institute establishment bill and The Nigeria Police Trust Fund establishment bill into law.

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