President Muhammadu Buhari has refused assent to the bill seeking for $1 billion for the completion of Ajaokuta Steel Company. The rejected bill with seven others were forwarded to him by the National Assembly in February this year.
In separate letters read on the floor of the Senate Tuesday by the
Senate President, Bukola Saraki, Buhari cited several reasons ranging
from infractions on extant laws, duplication of responsibilities of
existing agencies, to financial constraints for refusing assents on the
bills.
The President in his refusal to sign the Ajaokuta Completion Fund
Bill as stated in a letter dated March 19, 2018, said appropriating
$1billion from the Excess Crude Account ( ECA) as requested for in the
bill by the federal lawmakers is not the best strategic option for
Nigeria at this time of budgetary constraints.
He said: ” The Nation cannot afford to commit such an amount in the
midst of competing priorities with long term social and economic impact
that the funds can be alternatively deployed towards.
“Bills which seeks to make an appropriation of revenues to fund
public expenditure should be consolidated in the annual Appropriation
Act such that these proposals pass through the traditional scrutiny that
budget proposals are subjected to by the Ministry of Finance, Ministry
of Budget and National Planning and the National Assembly.
“Furthermore, as the Excess Crude Account Funds belong to the
Federation, it would be proper to consult with the National Economic
Council where the States are represented.
“Relevant stakeholders such as the Ministries of Mines and Steel
Development, Industry, Trade and Investment were not fully consulted.
“The inputs of key stakeholders are necessary to create the optimal
legal and regulatory framework as well as an institutional mechanism to
adequately regulate the steel sector ”
In another letter of refusal of assent dated March 27, President
Buhari cited provisions contained in section 32 of the Small and Medium
Enterprises Development Agency Bill 2018 as the major reason for
refusing assent to it.
He said, “Section 32 of the Bill , introduces (I) a 2.5% levy on the
profit before tax of the target companies which will increase the tax
burdens of the companies while offering no direct benefit to them : (ii)
a1% levy on imports which will also add to the cost of doing business
in the country , (iii), a 5% levy on luxury goods which duplicates
efforts by the Federal Ministry of Finance to raise excise on such goods
in a more sustainable manner to the benefit of the Federal Government
treasury “.
He added that if signed into law, the Agency will have similar
objectives to the Bank of Industry particularly with regard to the
funding of Small and Medium Enterprises.
“Accordingly, it is important to streamline its functions to avoid
duplication or overlap of functions with other government institutions
performing similar functions aside from the likelihood of increasing
public recurrent expenditure by the proposed creation of new public
sector bodies “.
Other bills declined assents by the President through separate
letters forwarded to that effect to the Senate are, the Nigerian
Aeronautical Search and Rescue Bill 2018, Chartered Institute of
Training and Development of Nigeria ( Establishment) Bill 2018 and
Federal Mortgage Bank of Nigeria Bill 2018.
Others are, the National Housing Fund Bill 2018, National Institute
of Credit Administration Bill 2018 and National Bio-Technology
Development Agency Bill 2018.