President Bola Tinubu has declined assent to Nigeria Institute of Transport Technology Repeal and Reenactment Bill passed by the National Assembly, citing several fundamental flaws in its provisions.
In a letter addressed to the Senate President which was read on the floor of the Senate during Tuesday’s resumption of plenary, President Tinubu explained that the proposed legislation contains significant defects that could undermine financial accountability and governance.
One major concern raised by the President is on Section 18(4) of the proposed legislation, which expands the sources of funding for the National Transport Logistics Research to include a 1% freight charge on every import and export, without the approval of the Federal Executive Council (FEC).
The Nigerian leader noted that this provision is inconsistent, particularly since the Institute is expected to be funded directly by the Federal government.
President Tinubu also faulted Section 20(1) and (2) of the Bill, which empowers the Institute to borrow through loans or overdrafts without Presidential approval except when the amount exceeds N50 million.
The President argued that under existing laws, such borrowing requires Presidential consent, and removing this oversight has neither been explained nor justified.
He warned that the provision could be abused, as the Institute might repeatedly borrow sums below the N50 million threshold to circumvent Presidential scrutiny.
Another contentious clause pointed out by President Tinubu is Section 23, which authorizes the Institute to invest surplus funds.
Tinubu questioned the practicality of this provision, emphasizing that agencies funded through Government appropriations rarely have surplus funds, as their budgets are strictly accounted for.
He stressed that investing surplus funds is typically reserved for revenue-generating agencies, not those funded by federal allocations.
The President further highlighted inconsistencies between Sections 21 and 23 of the Bill. While Section 21 limits investment to surplus funds, Section 23 allows any of the Institute’s funds to be invested. According to him , this could result in funds being diverted from their original purpose.
Additionally, he pointed out a contradiction between Section 18(2), which mandates that funds be used strictly to promote the objectives of the Act, and Section 23, which permits investment in securities with Ministerial approval.
Citing these legal, financial, and structural issues, President Tinubu said he is unable to grant assent to the Bill.
He added that his decision is in line with the powers vested in him under Section 58(4) of the 1999 Constitution (as amended).
(Editor: Ken Eseni)
