The Federal Government of Nigeria has announced that starting January 1, 2026, all individuals and businesses must have a Tax Identification Number (Tax ID) to access banking and other financial services.
The directive follows the signing of the Nigeria Tax Administration Act, 2025 into law by President Bola Ahmed Tinubu, a move aimed at strengthening tax compliance, expanding the tax net, and boosting government revenue.
According to the new law, the following key provisions will take effect:
- Compulsory Registration: All taxable persons must register with the relevant tax authority to obtain a Tax ID.
- Public Institutions: Federal, state, and local government ministries, departments, and agencies are required to secure a Tax ID.
- Foreign Entities: Non-resident individuals or companies providing taxable goods or services in Nigeria must obtain a Tax ID.
- Financial Transactions: Section 8(2) of the Act makes a valid Tax ID mandatory for opening or operating bank accounts, obtaining insurance, trading on the stock exchange, and entering into contracts with government agencies.
The Act also gives tax authorities the power to automatically issue a Tax ID where an individual or business fails to apply, and to decline issuance if necessary, with an obligation to notify the applicant within five working days.
Additionally, Tax IDs may be suspended or deregistered if a person or company ceases trading or business operations either temporarily or permanently.
Authorities have advised citizens, corporate bodies, and foreign entities to begin registration early to avoid disruption of their banking, insurance, and other financial activities once the policy takes effect.
