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Reps probes tax deductions, multiple charges by banks

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The House of Representatives has inaugurated an ad-hoc committee to investigate growing concerns over excessive tax deductions from the earnings of civil and public servants, as well as multiple and unclear bank charges imposed on customers of deposit money banks.

The committee, chaired by Rivers lawmaker, Kelechi Nwogu, was inaugurated in Abuja on Thursday by the Speaker, Dr Tajudeen Abbas.

Nigerians are increasingly voicing frustration over unfair and unexplained deductions from their salaries and bank accounts. Civil and public servants, in particular, say they are being hit by multiple taxes, levies, and bank fees that reduce their already stretched incomes.

The problem stems from Nigeria’s complex tax system, where overlapping deductions by federal, state, and local agencies often lead to double taxation and poor accountability. Many workers also allege that some deducted funds, such as pensions and housing contributions, are not properly remitted to the relevant authorities.

At the same time, commercial banks have come under fire for imposing a range of service charges, including stamp duty, Value Added Tax, card maintenance, and transfer fees, sometimes applied simultaneously on a single transaction.

In response to growing public outrage, the House of Representatives launched the Nwogu-led committee to probe the allegations.

Lawmakers are seeking explanations from the Central Bank of Nigeria, the Federal Inland Revenue Service, and commercial banks, with the aim of ensuring fairness and transparency.

The outcome of the investigation could shape crucial reforms to restore trust, protect consumers, and promote a more equitable financial system in Nigeria.

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Speaking at the inauguration, Nwogu said the probe was prompted by widespread complaints from Nigerians over confusing and often unexplained deductions by government agencies and financial institutions.

He described the development as a “pivotal step” in the National Assembly’s commitment to transparency, fairness, and accountability, saying lawmakers could no longer ignore the frustrations of citizens who suffer frequent, 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 him, the committee will investigate the nature, legality, and application of taxes, levies, and deductions affecting civil and public servants, as well as probe potential cases of non-remittance of deducted funds.

It will also examine the range of bank charges and VAT applied to existing fees, with the goal of ensuring transparency and fairness in financial transactions.

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

“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 urged full cooperation from government agencies, banks, regulatory bodies, and civil society organisations, stressing that the committee’s work would go beyond identifying problems to proposing actionable solutions that restore public confidence in Nigeria’s financial systems.

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“We encourage participation from a diverse range of stakeholders. Together, we can build a more equitable financial environment for all Nigerians.”

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

Abbas said the establishment of the committee reflects the legislature’s responsiveness to the cries of citizens who continue to face arbitrary deductions from salaries and bank accounts, both by 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.

He expressed concern over the growing problem of multiple and unclear bank charges, noting that such practices erode public trust and worsen the economic hardship already faced by citizens.

“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 urged members of the committee to conduct their assignment with integrity, objectivity, and commitment to the people, engaging all relevant stakeholders to ensure a thorough and solution-driven investigation.

“This committee must work diligently and engage stakeholders across all sectors to uncover the truth and provide actionable recommendations.

“Together, we have an opportunity to restore public confidence and strengthen financial justice in Nigeria,” he said.

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FG urged to expand grazing reserves nationwide

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Livestock and agriculture stakeholders have called on the Federal Government to fast-track the phased development of grazing reserves beyond the three pilot locations to at least one reserve in each of the six geopolitical zones. They welcomed the initiative as a step in the right direction.

The call followed the Federal Government’s commencement of a phased grazing reserve development programme, beginning with pilot sites at Wawa-Zange in Gombe State, Wase in Plateau State and Kawu in the Bwari Area Council of the Federal Capital Territory.

The Ministry of Livestock Development had said it was working with other ministries, state governments and the private sector to ensure the reserves have “good public schools for the pastoralists, for their children to attend… access roads and… public healthcare.”

In separate phone interviews with The PUNCH, stakeholders, including the National Secretary of the Miyetti Allah Cattle Breeders Association of Nigeria, Aliyu Gotomo, described the move as overdue but cautioned that the scope remained limited.

“Generally, the development of grazing reserves is the most essential thing that is required for pastoralism development. And I think it’s a welcome development that they have started. At least we have started somewhere,” Gotomo said.

He added that properly developed reserves with water, veterinary services and access roads would reduce transhumance and insecurity. “If these things are provided, the major movement from one state to the other in search of greener pastures will be reduced. So, all the conflicts from farmer-herder and other insecurity issues will also be alleviated,” he said.

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However, Gotomo urged the government to expand the programme. He said, “Considering about 417 grazing reserves across the states, I think the number is very, very small. They could have started at least with one in each of the political zones,” stressing that the scale did not match “the population of livestock we have in Nigeria and the number of people engaged in pastoralism.”

He also called for deeper engagement with pastoralists, local governments and traditional rulers to ensure ownership and sustainability.

“The actual beneficiaries, the native pastoralists, should be properly engaged… The local government areas and traditional rulers should also be involved so that proper maintenance and sustainability can be adhered to,” he added.

Chairman of the Lagos Chamber of Commerce and Industry’s Agriculture and Allied Group, Tunde Banjoko, also welcomed the initiative but echoed concerns about regional balance and transparency.

“I think the idea of phased grazing by the Federal Government is a very good initiative. I also believe it will reduce the frequent clashes we are having with farmers,” Banjoko said, adding that it would improve quality and returns for farmers and attract private investment.

He warned, however, that concentration of reserves in limited areas could create new tensions.

“Out of the 417 grazing reserves, except for two in the South-West, I’m not sure there’s any in the South-South or South-East. So, what is the alternative for them?” he asked.

Banjoko urged the government to ensure national spread: “We need to also provide more alternatives in the South-South, South-West and South-East so that we can reduce these frequent clashes in this region as well.”

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He further called for openness in implementation. “People want to see the pictures; people want to see how far they have gone. If there’s enough transparency, then the private sector will come in,” he added, while stressing the need for strong regulations, stakeholder engagement and traceability systems in livestock management.

President of the Commercial Dairy Ranchers Association of Nigeria, Muhammadu Abubakar, said the pilot phase should serve as a model for nationwide rollout.

“The government embarking on a phased grazing reserve development is a good idea. At least the first three should serve as a model,” Abubakar said.

The CODARAN chief noted that the pilots would allow the government to test and refine the approach before scaling up.

“That is where you can experiment with the workability… Look at the downs and the ups and then make amends. Then you will have a model that you just pick and plug in other reserves,” he said.

Abubakar expressed confidence in the public-private approach, noting that challenges would become clearer as implementation progresses.

“When that takes off, we from the private sector will be involved, and then we’re likely going to point out areas that should be corrected or amended,” he added.

The stakeholders agreed that while the pilot programme marks a positive start, expanding the reserves across all zones and carrying communities along would be critical to reducing conflicts and modernising Nigeria’s livestock sector.

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Bread prices: No significant drop in flour price, variables — Bakers

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Premium Breadmakers Association of Nigeria, PBAN, has refuted a viral social media post claiming that the price of flour has plummeted to between N35,000 to N40,000 per 50kg bag. The post further accuses bread makers of “wickedly” refusing to reduce the prices of bread to reflect the drop.

A statement by Emmanuel Onyoh, General Secretary, PBAN, said that the claims are false, and a calculated attempt to incite the Nigerian public against “hardworking bakers who are struggling to stay afloat.”

According to the statement, “The Reality of Flour Pricing as of today, December 16, 2025, the price of a 50kg bag of wheat flour is between N55,000 and N62,000(depending on the brand and where you’re buying from) significantly higher than the fabricated figures circulating online. While some flour millers recently announced a marginal price reduction of approximately N2,000, this is a “drop in the ocean” compared to the overall production deficit”.

“Mathematically, a N2,000 reduction on a bag of flour translates to about N20 saving on the family sized loaf. This small margin is immediately swallowed by the skyrocketing costs of other essential inputs such as yeast, improver, margarine and preservative”.

The General Secretary also revealed what he called “The “Hidden” Costs of Your Daily Bread” . He said, “Needless to say, that besides flour, there are other various ingredients required for operational cost and processes in bread. PBAN members are currently battling a “perfect storm” of economic pressures that make a price reduction impossible at this time,”

He also emphasized the cost of electricity and the diesel required to power industrial ovens and generators, adding that 90% of baking machinery are imported. The replacement cost of equipment

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and repairs had increased tremendously in the past few years.

“We are facing unprecedented expenses in fueling and maintaining distribution vehicles to get bread to your neighbourhoods amidst deteriorating road networks. In compliance with the new National Minimum Wage of N70,000, our wage bills have increased significantly. We choose to pay our staff fairly rather than shut down. Bakers are currently burdened by a “spectrum of taxes” from federal, state, and local government agencies, many of which are overlapping and punitive.

“The Premium Breadmakers Association of Nigeria,PBAN, as a responsible association that is mindful of the shrink on disposable income of consumers, we have advised our members to maintain same quality standard and consider introducing bread variants in sizes that falls/fits into various consumer strata.

“We assure the general public that our members shall not hesitate to reduce the prices of bread the moment the cost dynamics and the Nigerian economy reflect a genuine and sustainable downward trend.

“Our primary goal remains the provision of quality, safe, and affordable bread that meets the highest regulatory standards,” he assured.

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FG recorded N30tn revenue shortfall in 2025 – Edun

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The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, opened up on Tuesday that the Federal Government recorded a significant revenue shortfall in the 2025 fiscal year.

He noted that while the Federal Government projected N40.8tn revenue for this year, it ended up making only N10.7tn.

Edun made the disclosure while appearing before the House of Representatives Committees on Finance and National Planning during an interactive session on the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper.

He recalled that the Federal Government had projected a revenue target of N40.8tn in 2025 to fund the N54.9tn “budget of restoration,” designed to stabilise the economy, secure peace and lay the foundation for long-term prosperity.

However, the minister said current fiscal performance shows that total revenue for the year is likely to end at about N10.7tn.

According to him, the sharp shortfall is largely attributable to weak oil and gas earnings, particularly Petroleum Profit Tax and Company Income Tax from oil and gas companies, alongside persistent underperformance across several revenue subheads.

“The current trajectory indicates that federal revenues for the full year will likely end at around N10.7tn compared to the N40.8tn projection,” Edun told lawmakers.

The minister’s disclosure on Tuesday is in sharp contrast to the declaration by President Bola Tinubu in September that the Federal Government had already met its revenue target

“Today I can stand here before you to brag: Nigeria is not borrowing.

We have met our revenue target for the year and we met it in August,” Tinubu had told members of  The Buhari Organisation who visited him at the Presidential Villa in Abuja.

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However, speaking on Tuesday, the finance minister admitted that revenue shortfall harmpered the implementation of the N54.9tn 2025 budget.

He explained that although the Federal Government also raised about N14.1tn through borrowing, the combined inflows still fell far short of what was required to fully fund the 2025 budget.

Despite the revenue gap, Edun said the government had continued to meet critical obligations through what he described as prudent treasury management.

He noted that salaries, statutory transfers, as well as domestic and foreign debt service obligations, had been paid as and when due through “skillful, imaginative and creative handling” of available resources.

Providing further insight into expenditure performance, the minister said capital releases to ministries, departments and agencies in 2024 stood at N5.2tn out of a budgeted N7.1tn, representing 73 per cent performance.

He added that total capital expenditure, including multilateral and bilateral-funded projects, reached N11.1tn out of N13.7tn, or 84 per cent.

The minister cautioned that expenditure plans heavily tied to oil revenues must remain flexible, warning against committing the government to spending obligations based on projections that have consistently failed to materialise.

“We must be ambitious, but given the experience of the past two years, spending linked to these revenues must depend on the funds actually coming in,” he said.

Also speaking at the session, the Minister of Budget and National Planning, Atiku Bagudu, said the MTEF and FSP were developed through extensive consultations with key stakeholders, including government agencies, the private sector, civil society organisations and development partners

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Bagudu acknowledged that revenue assumptions remained a subject of intense debate within the Economic Management Team, explaining that while some members favoured conservative projections informed by historical performance, others argued for ambitious targets to compel revenue-generating agencies to improve efficiency and collection.

He disclosed that although the government retained an oil production target of 2.06 million barrels per day for policy planning, a more cautious assumption of 1.84 million barrels per day was adopted for revenue calculations in the 2026 budget framework.

Earlier, the Chairman of the House Committee on Finance, James Faleke, called for a more critical and realistic approach to budget preparation, warning against bloated budgets that often face serious implementation challenges.

Nigeria’s revenue performance in 2025 has been undermined by a combination of structural and cyclical factors.

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