Two bills passed by the National Assembly have been rejected by President Bola Tinubu, a decision he conveyed in letters read to senators as they resumed from their annual vacation on Tuesday.
Tinubu, in a July 30 letter, declined assent to the Nigerian Institute of Transport Technology Bill, 2025.
He cited ‘fundamental defects’ and inconsistencies with existing financial and constitutional provisions as the reasons for refusing to append his signature to the piece of legislation.
The President also expressed reservations that the bill contained provisions likely to encourage abuse of funds, which the federal government must guard against.
He noted, ‘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.’
According to Tinubu, Section 18(4a) of the bill sought to expand the institute’s funding sources to include one per cent of every import and export levy from Nigeria, a provision the President argued was introduced without the approval of the Federal Executive Council (FEC).
The President stressed that such a levy would lead ‘a duplication of revenue sources and unnecessary financial burden’, considering that the government was already funding the institute.
Similarly, he objected to 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.
But, disagreeing with the provision, he wrote, ‘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 N50 million or less repeatedly to avoid approval’, adding that the possible end would likely be financial abuses.
He equally observed that Sections 23 and 24(5) of the bill contained contradictions regarding how the institute’s funds could be managed or invested.
Tinubu stated that while the institute is to be funded primarily through federal appropriations, the bill allows it to invest its surplus funds, a move inconsistent with public finance principles, since agencies funded by government appropriations typically do not generate surpluses.
The President added 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.
He wrote, ‘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 a second letter read by the President of the Senate, Godswill Akpabio, Tinubu also withheld assent to the National Assembly Library (Establishment) Fund Bill on the grounds that the provisions for funding would be set ‘unsustainable.’
Akpabio, while responding to the decisions of Tinubu, seemed surprised that he actually read all the bills passed by the National Assembly clause-by-clause as seen by his detailed observations.
Akpabio promised that the lawmakers would look at the President’s reservations and do a review of the bills.
However, Tinubu signed two bills, -The Nigeria Police Force Training Institute (Establishment) Bill; and The Nigeria Police Trust Fund (Establishment) Bill into law -both earlier passed by the National Assembly.