The House of Representatives has accused commercial banks in Nigeria of illegally deducting unexplained charges from the bank accounts of civil servants, public servants, and other customers without remitting the funds as required by law. These illegal bank deductions in Nigeria have sparked significant concern.
This allegation surfaced on Tuesday during the opening session of the House Ad-hoc Committee investigating illegal bank deductions in Nigeria, including tax deductions from workers’ earnings and multiple bank charges imposed on customers, highlighting the widespread issue of unauthorized bank deductions.
Banks Are ‘Perpetrating Illegality’ Committee Chair
Committee Chairman, Rep. Kelechi Nwogu, said several banks had been engaging in financial misconduct by imposing questionable deductions on customers’ accounts. The focus on examining unauthorized deductions in Nigerian banks remains a priority in addressing illegal bank deductions in Nigeria.
According to him, the investigation aims to ensure that all bank deductions are lawful, properly documented, and accurately remitted.
Nwogu stated:
“Commercial banks are perpetrating illegality by deducting inexplicable charges from civil servants, public servants and other customers’ bank accounts without remittances.”
He said the committee would not overlook any irregularities uncovered during the probe.
Panel Extends Invitation to Finance Ministry, EFCC, OAGF
The chairman revealed that the committee had invited the Ministry of Finance and would collaborate with the Office of the Accountant-General of the Federation, the Economic and Financial Crimes Commission (EFCC), and all commercial banks to ensure transparency in addressing the problem of illegal bank deductions in Nigeria.
He reaffirmed the committee’s commitment to protecting Nigerians from improper bank charges.
Bank CEOs Ordered to Appear in Person
The committee rejected the representation of CEOs of major banks such as GTBank, Zenith Bank, Access Bank, and others, insisting that the chief executives must appear personally before the panel to discuss illegal bank deductions occurring in Nigeria.
Nwogu said:
“You cannot appear here without an identity. We are here on the mandate of the people who elected us. Your CEOs must appear.”
The committee adjourned to next Wednesday and instructed banks to submit all requested documents no later than Monday.
Four-Day Ultimatum for Document Submission
The panel gave a four-day ultimatum for all banks involved to provide the necessary documents for the investigation.
Nwogu warned that any bank that fails to comply with the deadline will be sanctioned.
