Tinubu Rejects Two Bills Over Fiscal Discipline Concerns

President Bola Tinubu has withheld his assent to two recently passed bills from the National Assembly, citing provisions that could weaken fiscal discipline, conflict with existing laws, and set risky precedents in public finance management.

The President’s decision was contained in letters read by Senate President Godswill Akpabio during Tuesday’s plenary session. The affected bills are the Nigerian Institute of Transport Technology (Establishment) Bill, 2025, and the National Library Trust Fund (Establishment, etc.) Amendment Bill, 2025.

While acknowledging the intent behind both legislations, President Tinubu raised concerns that several clauses were inconsistent with federal fiscal and administrative principles.

On the Transport Technology Bill, the President faulted provisions introducing new levies, unregulated borrowing, and the investment of public funds in securities. He warned that such measures could open opaque revenue channels and increase the risk of financial abuse.

He particularly pointed to Section 18(4a), which proposed funding the institute through “one per cent of the freight on every import and export,” noting that the levy, introduced without Federal Executive Council (FEC) approval, would burden trade and bypass the national budgeting process.

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

Sections 21 and 23, which allowed the institute to invest government-appropriated funds, were also deemed “fiscally dangerous.” The President warned that “these provisions, if allowed, would not only undermine fiscal discipline but also create opportunities for financial abuse.”

In rejecting the National Library Trust Fund (Amendment) Bill, Tinubu stated that while its objectives were commendable, several sections conflicted with existing federal laws and policy frameworks. He cited problematic provisions related to agency funding, taxation of national entities, staff remuneration, and tenure or age limits, describing them as “unsustainable and against the public interest.”

The President urged lawmakers to revisit and correct the highlighted issues, stressing the importance of legislative alignment with national economic and fiscal goals.

After reading both correspondences, Akpabio commended Tinubu’s “diligence in reviewing every legislation” and directed relevant Senate committees to rework the bills for further consideration.

“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.

The Senate subsequently 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 review.

The decision underscores President Tinubu’s commitment to enforcing fiscal responsibility and ensuring that all legislative proposals align with the Renewed Hope administration’s broader economic reform agenda.