The House of Representatives has ordered chief executive officers of Nigeria’s commercial banks to personally appear before its investigative panel over allegations of unlawful and unexplained deductions from customers’ accounts.
The directive was issued on Tuesday in Abuja by the House Ad-hoc Committee probing the deduction of taxes from civil and public servants’ earnings as well as various bank charges imposed on customers.
Commercial banks in Nigeria apply several fees—including SMS alert charges, account maintenance fees, and transfer charges—many of which have come under scrutiny.
Background
A recent Business Expectations Survey Report by the Central Bank of Nigeria (CBN) showed that high bank charges, multiple taxes, and poor infrastructure were the top constraints affecting businesses in September 2025.
Respondents highlighted High Bank Charges (70.8), High/Multiple Taxes (70.8), and Poor Infrastructure (70.7) as the major challenges faced by businesses nationwide.
Despite these concerns, the report noted a modest level of optimism among business operators.
Banks Accused of Unlawful Deductions
During the panel session, the committee chairman, Rep. Kelechi Nwogu, accused banks of carrying out systematic and illegal deductions, noting that some charges are neither transparent nor remitted to the appropriate authorities.
“Commercial banks are perpetrating illegality by deducting inexplicable charges from civil servants, public servants, and other customers without proper remittances,” Nwogu said.
He expressed concern over the routine deduction of SMS charges, maintenance fees, and transfer charges, questioning the legality and transparency surrounding these deductions.
Nwogu emphasized that the committee’s duty is to ensure that all charges imposed by banks are duly authorized, correctly calculated, and properly utilized.
“Our mandate is clear. All deductions must be done rightly, fined rightly, and used rightly,” he stated.
He added that the committee has also invited the Ministry of Finance and will collaborate with the Office of the Accountant-General of the Federation, the Economic and Financial Crimes Commission (EFCC), and commercial banks to ensure a comprehensive investigation.
CEOs Must Appear in Person
The committee rejected any attempt by banks to send representatives in place of their CEOs, insisting that the chief executives must appear before the panel.
“You cannot appear here without an identity. We are here on the mandate of those who elected us,” Nwogu said.
He further announced that the committee has scheduled its next meeting for Wednesday next week and directed the banks to submit all required documents by Monday.
“We will review every document and place you on oath,” he added.
Four-Day Deadline for Document Submission
The committee gave all affected banks a four-day deadline to provide the documents needed for the inquiry. Any bank that fails to comply by Monday, Nwogu warned, will face sanctions.
According to him, the panel is committed to uncovering the reasons behind what it described as unjustified and suspicious deductions from customers’ accounts.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
