The House of Representatives has begun investigation into multiple bank deductions and charges incurred by depositors in Nigeria, PHILIP NYAM reports
Worried by ceaseless complaints by bank depositors, especially public servants of opaque and inexplicable bank deductions, charges as well as taxes, the House of Representatives, last week, inaugurated an investigative committee to look into the issue and report back to it. Many customers have been complaining of array of deductions by commercial banks that accumulate over time, expressing frustration that this practice significantly affects their disposable income and savings.
It is known that banks typically charge monthly fees for account maintenance and transaction alerts. There are also charges for large cash transactions like deposits or withdrawals above N500,000. Transfers between different banks attract multiple charges including transfer fees, Value Added Tax (VAT), SMS charge and electronic fund transfer levy. The list is endless.
These multiple charges place undue strain on the income of low income earners hence experts have warned that lack of transparency in these charges erodes public confidence in financial institutions. Many have also argued that if not checked, these costs are capable of negatively affecting the gains recorded in financial inclusion efforts in the last few years.
It was against these backdrops that the House of Representatives, on Thursday, inaugurated an adhoc committee to investigate the deduction of taxes and sundry charges from the earnings of civil and public servants, as well as multiple bank charges imposed on customers’ accounts across the country.
Chairman of committee harps on fairness
Chairman of the ad hoc committee, Hon. Kelechi Nwogu, said the committee was set up in response to mounting concerns from civil servants and other Nigerians over the growing complexities and inconsistencies in tax deductions and banking fees.
Nwogu described inauguration of the ad hoc committee as a pivotal step in the National Assembly’s commitment to transparency, fairness, and accountability, noting that the House could no longer ignore the frustrations of citizens, who suffer unexplained deductions from their salaries and bank accounts.
“It is with great honour and a profound sense of duty that I stand before you today as the chairman of the ad hoc committee to investigate the deduction of taxes and sundry charges from the earnings of civil and public servants as well as the multiple bank charges on customers’ accounts in Nigeria,” he said.
According to him, the committee was set up to respond to citizens’ concerns and ensure that financial practices across both government and banking institutions align with principles of justice and equity. “These issues have contributed to confusion and a lack of trust among our populace. As their representatives, it is our responsibility to address these concerns directly and ensure that financial practices promote justice and equity,” Nwogu said.
He outlined the committee’s mandate to include investigating the nature and application of taxes, levies, and salary deductions affecting civil and public servants, as well as probing possible cases of non-remittance of deducted funds. The committee will also examine the range of bank charges, including VAT applied to existing fees, with the aim of ensuring transparency and fairness.
“We aim to identify any irregularities, recommend essential reforms, and advocate for the rights of all Nigerians. We will evaluate the impact of these deductions and charges to ensure they are just and transparent. “As we progress, we are prepared to make far-reaching and decisive recommendations, not minding whose ox is gored, and will not hesitate to utilize the full authority of the Legislature when necessary,” he said.
Nwogu called for full cooperation and participation from all stakeholders, including government agencies, banks, regulatory bodies, and civil society organisations. He urged members of the committee and invited experts to work collaboratively and objectively to deliver a report that would result in real change. “I encourage each of you, Honourable Members, industry experts, and stakeholders, to engage in this investigation with open minds and a collaborative spirit. Your contributions are essential as we seek effective solutions,” he said.
Nwogu stressed that the committee’s work would not end with identifying problems but would focus on proposing actionable reforms that strengthen public confidence in Nigeria’s financial systems. “We encourage participation from a diverse range of stakeholders throughout this process. Together, we can facilitate the establishment of a more equitable financial environment for all Nigerians.”
He commended the Speaker of the House of Representatives, Tajudeen Abbas and members of the 10th Assembly for their foresight in constituting the committee, describing the assignment as one of national importance. “I extend my gratitude to the Speaker and the House of Representatives for entrusting us with this significant assignment, as well as to all stakeholders in attendance today.
Your commitment will play a crucial role in advancing our nation’s progress,” Nwogu said. He expressed optimism that the investigation would lead to meaningful policy and institutional changes that would improve financial fairness and accountability in the country. “Let us collaborate to ensure that this investigation culminates in meaningful changes that enhance the well-being of every Nigerian citizen,” he concluded.
Speaker stresses transparency
The Speaker of the House of Representatives, Abbas, reiterated the commitment of the 10th National Assembly to promoting fairness, transparency, and accountability in Nigeria’s financial system, particularly as it concerns tax deductions and multiple bank charges burdening citizens.
The speaker, who was represented by the Chief Whip of the House, Usman Kumo, said the setting up of the committee reflected the legislature’s responsiveness to the cries of Nigerians who have continued to experience arbitrary deductions from their salaries and accounts, both by government agencies and financial institutions.
“It is a privilege to stand before you today to inaugurate the House ad hoc committee dedicated to investigating tax deductions and various charges affecting the earnings of our civil and public servants, as well as the excessive bank fees impacting everyday Nigerians,” he said. He stressed that the House owes it to the people to ensure financial justice, especially for civil and public servants whose incomes are already overstretched.
“As representatives of the people, we are entrusted with the duty to uphold transparency, accountability, and fairness in our financial systems. The deductions faced by our public servants raise serious concerns. These dedicated individuals, who work tirelessly for our nation, should not bear the burden of unjust financial practices that diminish their earnings,” Abbas said.
The speaker also decried the growing problem of multiple and unclear bank charges, noting that such practices undermine public confidence and worsen the economic hardship faced by citizens. “Moreover, the issue of multiple bank charges erodes public trust and places an undue strain on citizens’ finances.
The demands for transparency and fairness in banking cannot be ignored; they require our immediate attention,” he stated. He urged the committee to conduct its assignment with integrity, objectivity, and commitment to the people, engaging all relevant stakeholders to ensure a comprehensive investigation that will lead to practical reforms.
“This committee will work diligently and with integrity, engaging stakeholders across various sectors to uncover the truth and provide actionable recommendations for reform that protect the rights of our citizens,” he said.
He also encouraged members of the committee to maintain an open mind and spirit of cooperation, saying the success of their work could help restore Nigerians’ confidence in the financial system. His words: “I encourage each member to approach this task with collaboration and an open mind. Together, we have the opportunity to enact meaningful change and restore confidence in our financial institutions.”
Abbas also emphasised that the assignment was part of a broader legislative effort to ensure that Nigerians are not unfairly treated by the institutions meant to serve them, warning that the House would not tolerate exploitative practices in either the public or private sectors. “Let us remember that our efforts aim to ensure that every Nigerian has a voice and that our actions will shape a just financial landscape for future generations,” he said.
The speaker concluded by calling for unity and dedication in the pursuit of fairness and equity, expressing confidence that the committee’s work would produce lasting reforms that strengthen Nigeria’s financial integrity. “I stress the importance of our unity and dedication as we embark on this vital mission.
May our work yield lasting benefits and strengthen the principles of justice and equity in our great nation,” he said. While analysts maintain that the outcome of this investigation will go a long way in addressing the concerns of many bank depositors, how the ad hoc committee handles this sensitive issue will determine the fate of hapless bank customers in Nigeria.
