The federal government of Nigeria stated that beginning January 1, 2026, Nigerians and non-residents will no longer be able to open or operate bank accounts without a Tax Identification Number (Tax ID).
This new requirement is part of the Nigeria Tax Administration Act, 2025, which was recently signed into law by President Bola Tinubu.
The legislation also makes Tax IDs compulsory for other financial and business transactions, including insurance, stock market dealings, and contracts with federal and state governments.
Under the law, every taxable person must register with the appropriate authority to obtain a Tax ID card. Ministries, departments, and agencies at all levels of government are also required to secure Tax IDs.
Non-residents providing taxable goods and services in Nigeria must equally register and pay tax in the country. The Act further empowers tax authorities to issue a Tax ID to individuals who fail to apply, or to reject an application if necessary information justifies it, with feedback to be provided within five working days.
Business owners who suspend or permanently close their operations are mandated to notify the tax authority within 30 days, after which their Tax ID will either be marked dormant or deregistered.
The law also establishes the Nigeria Revenue Service, with an Executive Chairman heading its Governing Board for a renewable four-year term. The Service will be funded through a four percent deduction from all revenues collected, excluding petroleum royalties.
