• Says provisions’ll encourage misappropriation of funds

From Adesuwa Tsan, Abuja

President Bola Tinubu has declined assent to two bills passed by the National Assembly.

This was contained in a letter addressed to the Senate President, Godswill Akpabio, and read during yesterday’s plenary.

In the letter dated July 30, the President conveyed his decision to withhold assent to the Nigerian Institute of Transport Technology (Establishment) Bill, 2025, citing what he described as “fundamental defects” and inconsistencies with existing financial and constitutional provisions.

Tinubu explained that several clauses in the bill conflicted with extant laws and posed risks of financial abuse if allowed to stand.

“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.

Outlining his reasons, Tinubu noted 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.

He added that such a levy, especially when the institute is already to be funded by the Federal Government, would create “a duplication of revenue sources and unnecessary financial burden.”

The President also 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 N50 million.

“In the extant Act, 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,” Tinubu warned, describing the clause as one that could lead to serious financial abuse.

Further, the President pointed out that Sections 23 and 24(5) of the bill contained contradictions regarding how the institute’s funds could be managed or invested.

He 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 added that Section 18(2) of the proposed law also created confusion by allowing the institute’s funds to be used for investment purposes, contrary to the section’s stated objective of promoting the institute’s core functions.

“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,” he noted.

For these reasons, Tinubu said he was unable to sign the bill into law and returned it to the National Assembly for reconsideration. “Please accept, distinguished senate president and distinguished senators, the assurances of my highest regards,” he wrote.

President Tinubu also declined assent to the National Assembly Library Fund, saying the provision for its funding would set unsustainable precedents.

Responding to the decline, Senator Akpabio commended the President for the observations, saying it was a sign that he scrutinised the documents thoroughly. He further added that the relevant committees would review the bills to address the areas of concern.

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

This was disclosed by Akpabio during the plenary yesterday.