The House of Representatives has inaugurated an ad-hoc committee to investigate widespread complaints of excessive tax deductions from civil and public servants’ salaries and multiple, unclear bank charges imposed on customers by commercial banks.
The committee, chaired by Rivers lawmaker Kelechi Nwogu, was inaugurated in Abuja on Thursday by the Speaker of the House, Tajudeen Abbas, amid mounting public anger over arbitrary deductions that continue to eat deep into workers’ incomes.
Across Nigeria, civil servants and private citizens alike have decried what they describe as “unexplained” salary and bank account deductions — ranging from overlapping taxes and levies to simultaneous service fees on single transactions.
Nigeria’s tax system has long been criticized for its complexity, with overlapping federal, state, and local levies often resulting in double taxation and poor accountability. Many workers also allege that certain deductions, such as pension or housing fund contributions, are not properly remitted to relevant authorities.
At the same time, banks have come under fire for imposing numerous service charges — including stamp duty, VAT, card maintenance, and transfer fees — often applied concurrently.
In response, lawmakers have tasked the newly inaugurated Nwogu-led committee with probing the legality, transparency, and fairness of these deductions. The committee will engage the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), and commercial banks to uncover irregularities and propose reforms.
Speaking during the inauguration, Nwogu described the probe as a “pivotal step toward restoring fairness and transparency in Nigeria’s financial system.”
“We are responding to citizens’ concerns to ensure that financial practices in both the public and private sectors align with justice and equity,” he said.
He noted that the committee will not only identify irregularities but also recommend actionable solutions to restore public trust.
“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 added.
In his remarks, Speaker Abbas — represented by Chief Whip Bello Kumo — reaffirmed the National Assembly’s commitment to protecting Nigerians from exploitative financial practices.
“Public servants who work tirelessly for our nation should not bear the burden of unjust financial deductions that shrink their hard-earned income,” Abbas said.
He decried the growing problem of multiple and opaque bank charges, saying such practices erode public trust and worsen economic hardship.
Abbas urged the committee to conduct its work with integrity and objectivity, engaging all relevant stakeholders to ensure a comprehensive, solution-driven investigation.
“Together, we have an opportunity to restore public confidence and strengthen financial justice in Nigeria,” the Speaker added.
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