The Nigerian government has announced that, starting from 1 January 2026, all Nigerians and non-residents will be required to obtain a Tax Identification Number (Tax ID) to open or operate bank accounts and access financial services.
This directive follows the enactment of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.
The law makes it compulsory for individuals and entities to present a valid Tax ID when engaging in banking, insurance, stockbroking, and other financial transactions. It also applies to contracts with federal and state governments.
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Under Section 6(1) of the Act, non-residents supplying taxable goods or services or deriving income from Nigeria must register for tax purposes and obtain a Tax ID. To ensure compliance, Section 7(3) authorises tax authorities to assign Tax IDs to those who fail to register voluntarily. The Act also provides for suspension or deregistration of Tax IDs if businesses cease operations temporarily or permanently, provided tax authorities are notified within 30 days.
Financial institutions will be required to update their systems to verify customers’ Tax IDs before allowing account opening or transactions. The government expects this measure to expand the tax net and boost revenue collection.
Individuals and entities are advised to register for a Tax ID before the deadline to avoid disruption of financial activities.
The Nigeria Tax Administration Act aims to improve tax compliance and create a more transparent financial system across the country.
