Starting January 1, 2026, all Nigerians and non-residents will be required to obtain a Tax Identification Number (Tax ID) in order to open or operate bank accounts.
This new mandate comes as part of the Nigeria Tax Administration Act, 2025, which was recently signed into law by President Bola Tinubu.
According to Section 8(2) of the Act, the Tax ID is now mandatory not only for banking services but also for accessing insurance, stockbroking, and other financial services. The requirement also extends to individuals and businesses entering into contracts with federal or state governments.
For non-residents, Section 6(1) mandates registration for tax purposes, requiring them to obtain a Tax ID if they supply taxable goods and services or derive income from Nigeria.
To enforce compliance, Section 7(3) empowers tax authorities to assign one to individuals or entities who fail to register. The Act also allows for suspension or deregistration of a Tax ID if a business ceases operations temporarily or permanently, provided tax authorities are notified within 30 days.
The legislation is aimed at expanding Nigeria’s tax net and boosting revenue collection. Analysts say the policy could significantly improve tax compliance rates nationwide.
Financial institutions are expected to adjust their systems and processes ahead of the January 2026 rollout.
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