PRESIDENT TINUBU REJECTS TWO NATIONAL ASSEMBLY BILLS, WARNS OF FISCAL RISKS AND CONFLICT WITH EXISTING LAWS

President Bola Ahmed Tinubu, GCFR, has withheld his assent to two recently passed bills from the National Assembly, cautioning that certain provisions within them could weaken fiscal discipline, conflict with existing laws, and set a dangerous precedent for public finance management.

The development was revealed on Tuesday during plenary when the Senate President, Godswill Akpabio, read the President’s letters addressed to the Senate.

The two bills affected are the Nigerian Institute of Transport Technology (Establishment) Bill, 2025 and the National Library Trust Fund (Establishment, etc.) Amendment Bill, 2025.

While acknowledging the broad and positive objectives of the proposed legislations, President Tinubu expressed deep concerns that several clauses were inconsistent with the federal government’s fiscal and administrative principles.

On the Transport Technology Bill, the President particularly faulted certain provisions that introduced new levies, permitted unregulated borrowing, and allowed the investment of public funds in securities, actions he described as capable of creating opaque revenue channels and opening the door to financial misuse.

He drew specific attention to Section 18(4a), which proposed that the institute be funded through “one per cent of the freight on every import and export.” 

Tinubu warned that such a levy, introduced without Federal Executive Council approval, would overburden trade operators and sidestep the national budgetary process.

The President also objected to Section 20, which empowered the institute to borrow up to ₦50 million without presidential consent, describing it as “a loophole that could enable repeated borrowing below the threshold to evade oversight.”

Furthermore, Sections 21 and 23, which allowed the institute to invest government-appropriated funds, were sharply criticised as “fiscally dangerous.”

According to Tinubu, “These provisions, if allowed, would not only undermine fiscal discipline but also create opportunities for financial abuse.”

In a separate letter rejecting the National Library Trust Fund Amendment Bill, the President noted that although the bill’s objectives were commendable, several sections clashed with existing federal laws and policy frameworks.

He identified provisions relating to agency funding, taxation of national entities, staff remuneration, and tenure or age limits as potentially “unsustainable and against the public interest.”

“For these reasons, I cannot grant presidential assent to the bill in its present form. I urge the Senate to revisit and address the identified issues,” the President’s letter read in part.

Reacting after reading the correspondences, Senate President Akpabio commended Tinubu’s “diligence in reviewing every legislation” and directed the relevant committees to rework the affected bills for further legislative action.

“This demonstrates the seriousness with which Mr. President is reviewing every legislation we pass. It is now our responsibility to carefully address the issues he has raised,” Akpabio said.

Consequently, the Senate referred the Transport Technology Bill to the Committee of the Whole and the Library Trust Fund Amendment Bill to the Committees on Special Duties and Establishment and Public Service Matters for further scrutiny.

The withholding of assent to the two bills marks yet another instance of the executive arm’s close scrutiny of legislative proposals under the current dispensation.

It also underscores President Tinubu’s firm commitment to tightening fiscal control, ensuring transparency, and aligning legislative initiatives with the broader economic reform priorities of his Renewed Hope Administration.