Reps Launch Probe into Multiple Bank Charges, Excessive Tax Deductions on Workers’ Incomes

The House of Representatives has set up an ad-hoc committee to investigate widespread complaints over excessive tax deductions and multiple bank charges affecting civil and public servants across Nigeria. The committee, chaired by Rivers lawmaker Kelechi Nwogu, was inaugurated in Abuja by Speaker Tajudeen Abbas on Thursday, amid mounting public frustration over shrinking take-home pay and unexplained financial deductions.

Many Nigerians have raised concerns about overlapping taxes, levies, and deductions made by various federal, state, and local agencies, often without clear accountability. Workers say these multiple deductions, combined with persistent bank fees, have deepened financial hardship and eroded trust in both government and financial institutions. Allegations of unremitted pension and housing contributions have further fueled outrage.

Commercial banks have also come under scrutiny for imposing multiple charges on single transactions, including stamp duties, Value Added Tax (VAT), card maintenance, and transfer fees. The House committee is expected to question key financial regulators such as the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), and representatives of commercial banks to clarify these issues and ensure fair practices.

Chairman Kelechi Nwogu described the probe as a “pivotal step” toward protecting Nigerians from exploitative financial systems, stressing that lawmakers can no longer ignore citizens’ grievances. He pledged that the committee would investigate the legality and fairness of all taxes, levies, and charges imposed on workers, with the goal of recommending reforms that promote justice and transparency in the nation’s financial sector.

Speaker Abbas, represented by Chief Whip Bello Kumo, reaffirmed the National Assembly’s commitment to safeguarding Nigerians from arbitrary financial practices. He emphasized that public servants should not bear the brunt of unjust deductions or unclear bank charges, adding that the investigation aims to restore public confidence and strengthen accountability across Nigeria’s financial landscape.

source: punch