President Bola Tinubu has withheld his assent to two bills recently passed by the National Assembly, citing major concerns over their fiscal implications, legal inconsistencies and potential conflicts with federal policies.
The development was announced during plenary on Tuesday when the President of the senate, Senator Godswill Akpabio read separate correspondences from the President explaining his decision to reject the proposed laws.
While commending the intent behind the legislation, President Tinubu said several provisions were flawed and posed risks to financial discipline and good governance.
Among the key issues raised was a clause allowing the institute to collect one per cent of all import and export freight charges, which the President described as “onerous and unfair to businesses”. He noted that such a levy contradicts the Federal Government’s current tax policy framework.
The bill also empowers the institute to borrow up to 50 million naira without presidential approval, a provision President Tinubu warned could be exploited to bypass executive oversight, leading to potential financial abuse.
Additionally, he objected to a section that authorizes the institute to invest its funds, arguing that as a non-revenue-generating agency funded through federal allocations, such a mandate was inappropriate and out of step with the government’s fiscal management principles.
In a separate letter, President Tinubu also declined assent to the National Library Trust Fund Establishment (Amendment) Bill, 2025, citing contradictions with existing laws and government policies.
According to the President, the proposed amendments are inconsistent with national policies on the funding of public institutions, taxation of national entities, public service remuneration, and age and tenure limits for public servants.
He warned that enacting the bill in its current form would create an unsustainable precedent and may not serve the public interest.
The President urged the National Assembly to revisit and revise the problematic provisions in both bills to ensure alignment with existing laws and government priorities.
