Effective January 1, 2026, all Nigerians and non-residents will be required to have a Tax Identification Number (Tax ID) to open or operate bank accounts, following the recent enactment of the Nigeria Tax Administration Act, 2025 signed into law by President Bola Tinubu.
The new law mandates the Tax ID as compulsory not only for banking but also for insurance, stockbroking, and other financial services. Additionally, the Act extends the requirement to individuals and businesses entering into contracts with federal and state governments.
For non-residents, the law requires those supplying taxable goods or services, or earning income from Nigeria, to register for tax purposes and obtain a Tax ID.
To enforce compliance, tax authorities are empowered to assign Tax IDs to individuals or entities who fail to register voluntarily. The Act also allows for suspension or deregistration of Tax IDs if businesses cease operations temporarily or permanently, provided that tax authorities are notified within 30 days.
This legislation aims to broaden Nigeria’s tax base and increase government revenue through improved compliance. Analysts believe the new policy will significantly enhance tax collection efficiency nationwide.
Financial institutions have been advised to update their systems and processes to align with the new law ahead of the January 2026 implementation deadline.
