The House of Representatives has set up an ad-hoc committee to probe widespread complaints about excessive tax deductions from the salaries of civil and public servants, as well as multiple and unclear bank charges levied on customers by deposit money banks.

The committee, chaired by Kelechi Nwogu from Rivers State, was inaugurated on Thursday in Abuja by Speaker Tajudeen Abbas.

Many Nigerians have voiced growing frustration over unexplained deductions from their earnings and bank accounts, with workers in the public sector particularly affected by what they describe as multiple taxes, levies, and fees that further strain their incomes.

The issue is rooted in Nigeria’s complicated tax structure, where overlapping deductions by federal, state, and local authorities frequently result in double taxation and weak accountability. Many workers also claim that certain deductions—such as pension and housing contributions—are not being properly remitted to the appropriate agencies.

Commercial banks have also faced criticism for imposing numerous service charges—such as stamp duty, Value Added Tax, card maintenance, and transfer fees—often applied simultaneously to a single transaction.

Amid mounting public outrage, the House of Representatives inaugurated the Nwogu-led committee to investigate these concerns.

Lawmakers are demanding explanations from the Central Bank of Nigeria, the Federal Inland Revenue Service, and commercial banks to promote fairness, transparency, and accountability in financial deductions.

The findings of the investigation could pave the way for key reforms aimed at restoring public trust, protecting consumers, and fostering a fairer financial system in Nigeria.

Speaking at the committee’s inauguration, Nwogu said the probe was driven by widespread complaints from Nigerians about confusing and often unexplained deductions by government agencies and financial institutions.

He described the initiative as a “pivotal step” in the National Assembly’s commitment to transparency, fairness, and accountability, stressing that lawmakers could no longer ignore the frustrations of citizens facing repeated, unexplained financial losses.

“It is with great honour and a profound sense of duty that I stand before you today as Chairman of this 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 the principles of justice and equity.”

According to Nwogu, the committee will examine the nature, legality, and application of various taxes, levies, and deductions imposed on civil and public servants, as well as investigate possible cases of non-remittance of deducted funds.

The panel will also review the range of bank charges and the application of Value Added Tax on existing fees, with the aim of promoting transparency, fairness, and accountability in financial transactions.

“We aim to identify irregularities, recommend reforms, and advocate for the rights of all Nigerians,” Nwogu stated.

“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.”

He called for full cooperation from government agencies, banks, regulatory bodies, and civil society organisations, emphasising that the committee’s work would go beyond identifying issues to developing practical solutions aimed at restoring public confidence in Nigeria’s financial systems.

Earlier in his remarks, Speaker Tajudeen Abbas, represented by the Chief Whip, Bello Kumo—reaffirmed the 10th National Assembly’s commitment to safeguarding Nigerians from exploitative financial practices.

He said the creation of the committee underscores the legislature’s responsiveness to the concerns of citizens who continue to suffer arbitrary deductions from their salaries and bank accounts by both government agencies and financial institutions.

“It is a privilege to inaugurate this committee dedicated to investigating tax deductions and excessive bank charges burdening Nigerians.

“Public servants who work tirelessly for our nation should not bear the burden of unjust financial practices that reduce their hard-earned income,” he said.

“The issue of multiple bank charges undermines confidence in our financial institutions and places an undue strain on citizens’ finances.

“Demands for transparency and fairness in banking cannot be ignored; they require our urgent attention,” he said.

The Speaker charged the committee to approach its task with integrity, objectivity, and a firm commitment to serving the people.

He urged members to engage all relevant stakeholders to ensure a thorough and results-oriented investigation.

He further expressed concern about the growing incidence of multiple and unclear bank charges, warning that such practices weaken public trust and worsen the economic hardship already confronting Nigerians.