The House of Representatives has launched an investigation into allged excessive tax deductions and multiple bank charges imposed on customers by commercial banks across Nigeria.
The Representatives say the probe seeks to address growing complaints from customers and ensure greater transparency and accountability in the financial sector.
The lawmakers announced the plans to investigate the banks’ anomalies after the Speaker, Tajudeen Abbas inaugurated an ad-hoc committee chaired by Rivers lawmaker, Kelechi Nwogu committee in Abuja on Thursday.
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The problem stems from Nigeria’s complex tax system, where overlapping deductions by federal, state, and local agencies often lead to double taxation and poor accountability.
Many workers also allege that some deducted funds — such as pensions and housing contributions — are not properly remitted to the relevant authorities.
At the same time, commercial banks have come under attacks for imposing a range of service charges, including stamp duty, Value Added Tax, card maintenance, and transfer fees — sometimes applied simultaneously on a single transaction.
Lawmakers are seeking explanations from the Central Bank of Nigeria, the Federal Inland Revenue Service and commercial banks with the aim of ensuring fairness and transparency.
The outcome of the investigation could shape crucial reforms to restore trust, protect consumers, and promote a more equitable financial system in Nigeria.
Speaking at the inauguration, Nwogu said the probe was prompted by widespread complaints from Nigerians over confusing and often unexplained deductions by government agencies and financial institutions.
He described the development as a “pivotal step” in the National Assembly’s commitment to transparency, fairness, and accountability, saying lawmakers could no longer ignore the frustrations of citizens who suffer frequent, unexplained financial losses.
“It is with great honour and a profound sense of duty that I stand before you today as chairman of this ad-hoc committee.
“We are responding to citizens’ concerns to ensure that financial practices in both the public and private sectors align with the principles of justice and equity,” Nwogu said.
According to him, the committee will investigate the nature, legality, and application of taxes, levies, and deductions affecting civil and public servants, as well as probe potential cases of non-remittance of deducted funds.
It will also examine the range of bank charges and VAT applied to existing fees, with the goal of ensuring transparency and fairness in financial transactions.
“We aim to identify irregularities, recommend reforms, and advocate for the rights of all Nigerians.
“Our mission is to ensure that these deductions and charges are fair, transparent, and just — and we are prepared to make far-reaching recommendations, not minding whose ox is gored,” Nwogu said.
He urged full cooperation from government agencies, banks, regulatory bodies, and civil society organisations, stressing that the committee’s work would go beyond identifying problems to proposing actionable solutions that restore public confidence in Nigeria’s financial systems.
“We encourage participation from a diverse range of stakeholders. Together, we can build a more equitable financial environment for all Nigerians,” he said.
Earlier in his remark, the Speaker, Abbas, represented by the Chief Whip, Bello Kumo, had reaffirmed the commitment of the 10th National Assembly to protecting Nigerians from exploitative financial practices.
Abbas said the establishment of the committee reflects the legislature’s responsiveness to the cries of citizens who continue to face arbitrary deductions from salaries and bank accounts, both by government agencies and financial institutions.
“It is a privilege to inaugurate this committee dedicated to investigating tax deductions and excessive bank charges burdening Nigerians.
“Public servants who work tirelessly for our nation should not bear the burden of unjust financial practices that reduce their hard-earned income,” he said.
He expressed concern over the growing problem of multiple and unclear bank charges, noting that such practices erode public trust and worsen the economic hardship already faced by citizens.
“The issue of multiple bank charges undermines confidence in our financial institutions and places an undue strain on citizens’ finances.
“Demands for transparency and fairness in banking cannot be ignored; they require our urgent attention,” he said.
The Speaker urged members of the committee to conduct their assignment with integrity, objectivity, and commitment to the people, engaging all relevant stakeholders to ensure a thorough and solution-driven investigation.
“This committee must work diligently and engage stakeholders across all sectors to uncover the truth and provide actionable recommendations.
“Together, we have an opportunity to restore public confidence and strengthen financial justice in Nigeria,” he said.
