Reps launch probe into irregular tax deductions, multiple bank Charges

Leah TwakiNovember 5, 20254 min

The House of Representatives has commenced investigations into alleged irregular deductions of taxes and sundry charges from civil and public servants, as well as multiple bank charges 

Speaker Abbas inaugurates ad-hoc committee on tax deductions and multiple bank charges

The House of Representatives has inaugurated an ad-hoc committee to investigate alleged irregular deductions of taxes and sundry charges from the earnings of civil and public servants, as well as multiple and unclear bank charges imposed on customers nationwide.

Inaugurating the committee on Thursday, Speaker of the House, Rep. Tajudeen Abbas, said the move reflects the 10th National Assembly’s resolve to uphold transparency, accountability, and fairness in Nigeria’s financial systems.

Represented by the Chief Whip of the House, Rep. Usman Bello Kumo (APC Gombe),  the speaker lamented the increasing number of complaints from Nigerians about arbitrary deductions by both government agencies and financial institutions.

“Public servants, who work tirelessly for our nation, should not bear the burden of unjust financial practices that erode their already limited earnings,” Abbas stated. “The problem of multiple and unclear bank charges undermines public confidence and deepens economic hardship for citizens.”

He tasked the committee to carry out a thorough, transparent, and impartial investigation, engaging relevant stakeholders to identify irregularities and recommend reforms that will protect the financial rights of Nigerians.

ALSO READ: Reps move to harmonize taxation across all tiers of government

This committee must work diligently and with integrity,” Abbas charged. “Our goal is to ensure that every Nigerian has a voice and that exploitative practices—whether by public or private institutions—are no longer tolerated.”

Committee Vows Transparent Investigation

Chairman of the Committee, Rep. Kelechi Nwogu, described the assignment as a “critical step toward financial justice,” stressing that the legislature could no longer ignore the frustrations of civil servants and ordinary Nigerians facing unexplained deductions.

This committee was established in response to citizens’ growing concerns over the complexities and inconsistencies in tax deductions and banking fees,” Rep. Nwogu said. “It is our duty to ensure that these practices align with principles of justice and equity.”

He said the committee’s mandate includes probing the nature and application of taxes, levies, and salary deductions affecting civil and public servants; investigating possible cases of non-remittance; and examining the range of bank charges, including Value Added Tax (VAT) on existing fees.

We aim to identify irregularities, recommend essential reforms, and advocate for the rights of all Nigerians,” Rep. Nwogu stated. “We are prepared to make decisive recommendations—no matter whose ox is gored.”

Nwogu urged full cooperation from all stakeholders government agencies, banks, regulatory bodies, and civil society organisations pledging that the committee’s work would go beyond identifying problems to proposing actionable reforms that restore public confidence in Nigeria’s financial systems.

This investigation will not end at uncovering issues,” he said. “We are determined to proffer solutions that will make our financial sector fairer and more transparent.”

He commended the speaker and members of the 10th House for their foresight in constituting the committee, describing the probe as one of national importance.

“Let us collaborate to ensure that this investigation results in meaningful policy and institutional changes that enhance financial fairness and accountability in our country,” he concluded.

Background

The committee’s establishment follows mounting complaints from civil servants and bank customers nationwide about multiple deductions, unexplained charges, and inconsistencies in remittance of taxes and levies. The investigation is expected to produce recommendations that will guide future financial and regulatory reforms.

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Leah Twaki

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