The House of Representatives has set up an ad-hoc committee to investigate mounting complaints about excessive tax deductions from the earnings of civil and public servants, as well as multiple and unclear bank charges imposed by commercial banks.
The committee, chaired by Rivers State lawmaker Kelechi Nwogu, was inaugurated on Thursday in Abuja by Speaker Tajudeen Abbas.
Many Nigerians have expressed frustration over arbitrary deductions from their salaries and bank accounts. Civil and public servants, in particular, say they are burdened by overlapping taxes, levies, and fees that further strain their limited incomes.
The problem is rooted in Nigeria’s complicated tax structure, where overlapping deductions by federal, state, and local authorities often result in double taxation and poor accountability. Some workers also allege that statutory deductions such as pension and housing contributions are not properly remitted to relevant agencies.
Commercial banks have also faced criticism for charging customers various service fees — including stamp duty, VAT, card maintenance, and transfer charges — sometimes applied simultaneously on a single transaction.
In response to the growing public outcry, the House inaugurated the Nwogu-led committee to investigate the allegations and demand explanations from the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), and commercial banks. The goal, lawmakers said, is to promote fairness, transparency, and accountability in financial practices.
Speaking during the inauguration, Nwogu said the probe was driven by widespread complaints from Nigerians about confusing and often unjust deductions by government agencies and financial institutions.
“It is with great honour and a profound sense of duty that I stand before you today as chairman of this ad-hoc committee,” he said. “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.”
He explained that the committee would examine the legality and application of taxes, levies, and deductions affecting civil and public servants, as well as investigate cases of non-remittance of deducted funds.
It will also review the range of bank charges and the application of VAT on existing fees to ensure transparency and fairness in financial transactions.
“Our mission is to make sure these deductions and charges are fair, transparent, and just,” Nwogu stated. “We are ready to make bold recommendations, no matter whose interest is affected.”
He called for cooperation from government agencies, banks, regulatory bodies, and civil society groups, emphasizing that the committee’s work aims not only to identify problems but to propose actionable solutions that will restore public confidence in Nigeria’s financial system.
Speaker Abbas, represented by the Chief Whip, Bello Kumo, reaffirmed the National Assembly’s commitment to protecting Nigerians from exploitative financial practices.
He said the establishment of the committee reflects the legislature’s responsiveness to citizens’ complaints about arbitrary deductions from salaries and bank accounts.
“It is a privilege to inaugurate this committee dedicated to investigating tax deductions and excessive bank charges burdening Nigerians,” Abbas said. “Public servants who work tirelessly for our nation should not bear the weight of unfair financial practices that diminish their earnings.”
He decried the growing issue of multiple and unclear bank charges, warning that such practices erode public trust and deepen economic hardship.
“The issue of multiple bank charges undermines confidence in our financial institutions and worsens the financial strain on citizens. Transparency and fairness in banking must be urgently addressed,” he stressed.
Abbas urged the committee members to conduct their investigation with integrity, diligence, and objectivity, engaging all relevant stakeholders to ensure credible and lasting reforms.
“This committee must work thoroughly and engage all stakeholders to uncover the truth and recommend actionable solutions,” he said. “Together, we have an opportunity to restore public confidence and strengthen financial justice in Nigeria.”
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