From January 1, 2026, all Nigerians and non-residents will be required to obtain a Tax Identification Number (Tax ID) to open or operate bank accounts.
The mandate follows the enactment of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.
Under Section 8(2) of the Act, a Tax ID is now compulsory not only for banking but also for insurance, stock broking, and other financial services. The requirement also extends to contracts with federal and state government agencies.
For non-residents, Section 6(1) stipulates that anyone supplying taxable goods or services or earning income from Nigeria must register for tax purposes and obtain a Tax ID.
To ensure compliance, Section 7(3) grants tax authorities the power to assign a Tax ID to individuals or entities that fail to register. The Act also provides for suspension or deregistration of a Tax ID if a business temporarily or permanently ceases operations, provided the tax authorities are notified within 30 days.
The legislation aims to broaden Nigeria’s tax base and increase revenue collection. Analysts believe the policy could significantly improve nationwide tax compliance rates.
Financial institutions are expected to update their systems and procedures in preparation for the January 2026 implementation.
