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 Hon. Kelechi Nwogu from Rivers State, was inaugurated on Thursday in Abuja by the Speaker of the House, Rt. Hon. Tajudeen Abbas.
In recent months, Nigerians have increasingly expressed frustration over arbitrary and unexplained deductions from their salaries and bank accounts. Civil and public servants, in particular, have decried multiple taxes, levies, and fees that continue to erode their already limited incomes.
The challenge stems largely from Nigeria’s overlapping tax system, where federal, state, and local agencies often impose similar deductions, resulting in double taxation and poor accountability. Many workers also allege that some statutory deductions—such as pension and housing contributions—are not properly remitted to the appropriate authorities.
Commercial banks have likewise faced criticism for charging various service fees, including stamp duty, Value Added Tax (VAT), card maintenance fees, 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 probe the alleged irregularities and demand explanations from the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), and deposit money banks. The investigation aims to promote fairness, transparency, and accountability within both the public finance and banking sectors.
Speaking at the inauguration, Hon. Nwogu said the committee’s work was prompted by widespread complaints from Nigerians who have suffered frequent and unexplained deductions by government agencies and financial institutions.
He described the investigation as a “critical step” in the National Assembly’s commitment to transparency and justice, stressing that lawmakers could no longer ignore citizens’ growing frustrations.
“It is with great honour and a deep sense of duty that I assume this role as chairman of the ad hoc committee,” Nwogu said. “We are responding to citizens’ concerns to ensure that financial practices in both the public and private sectors align with fairness, accountability, and equity.”
According to him, the committee will examine the nature, legality, and administration of taxes, levies, and deductions affecting workers, as well as cases of unremitted funds. It will also review the range of bank charges and VAT applications to ensure greater transparency and consumer protection.
The outcome of the probe, lawmakers say, could pave the way for significant reforms to rebuild public trust and create a more equitable financial system in Nigeria.
