Chief executive officers of commercial banks have been directed to appear in person before an investigative panel of the House of Representatives over alleged illegal and unexplained deductions from customers’ bank accounts.
The summons was issued on Tuesday in Abuja by the House Ad-hoc Committee investigating the deduction of taxes from civil and public servants’ earnings and bank charges on customers’ accounts.
Commercial banks deduct various charges from customers’ accounts, including SMS charges, Maintenance charges, and transfer charges, among others.
Banks accused of perpetrating illegality
Speaking during the panel session, Committee Chairman, Rep. Kelechi Nwogu, accused commercial banks of engaging in systematic and unlawful deductions, including charges that 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’ bank accounts without remittances,” Nwogu said.
He noted that banks routinely deduct a range of charges such as SMS alerts, account maintenance fees, and transfer charges, raising concerns over the legality, transparency, and utilisation of such funds.
Reiterating the committee’s mandate, Nwogu said the investigation would ensure that all deductions imposed by banks are properly authorised, correctly computed, and appropriately utilised.
“Our mandate is clear. All deductions or charges must be deducted rightly, fined rightly, and used rightly,” he said.
He also disclosed that the committee had extended invitations to the Ministry of Finance and would work closely with the Office of the Accountant-General of the Federation, the Economic and Financial Crimes Commission (EFCC), and commercial banks operating in Nigeria to ensure a thorough probe.
CEOs must appear; no proxies allowed
The committee chairman firmly rejected any attempt by banks to send representatives instead of their chief executives, stressing that the CEOs themselves must appear unfailingly before the panel.
“You cannot appear here without an identity. We are not here on our own. We are here on the mandate of the people that elected us into parliament,” Nwogu said.
He added: “We have resolved to meet next week Wednesday. You must submit all requested documents on or before Monday. We will go through all the documents and we will put you on oath.”
Four-day Ultimatum To Submit Documents
The committee issued a four-day ultimatum to all banks involved to submit the relevant documents required for the investigation.
According to Nwogu, any bank that fails to comply with the directive by Monday will face sanctions.
The House panel, he said, is determined to leave no stone unturned in uncovering the reasons behind what it described as spurious and unjustified deductions from customers’ accounts.
What You Should Know
According to a recent Business Expectations Survey Report released by the Central Bank of Nigeria (CBN), excessive bank charges, multiple taxes, and inadequate infrastructure ranked as the top constraints in September 2025.
The survey revealed that respondents identified High Bank Charges (70.8), High/Multiple Taxes (70.8), and Poor Infrastructure (70.7) as the three most pressing challenges hindering business operations across the country.
Despite these challenges, the report showed a modest level of optimism among businesses.
Credit: Nairametrics
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