Nigeria Makes Tax Identification Number (Tax ID) Mandatory for Bank Accounts from January 2026
Story: written by Okafor Joseph September 12,2025
Starting January 1, 2026, Nigerians and non-residents will be required to present a Tax Identification Number (Tax ID) to open or operate bank accounts, according to the new Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu.
Under Section 8(2) of the Act, the Tax ID requirement covers not only banking but also insurance, stockbroking, and other financial services. It further extends to individuals and businesses entering into contracts with federal and state governments.
For non-residents, Section 6(1) mandates tax registration if they supply taxable goods or services in Nigeria or derive income from the country, making a Tax ID compulsory.
To strengthen compliance, Section 7(3) empowers tax authorities to assign Tax IDs to individuals or companies that fail to register voluntarily. The Act also provides for suspension or deregistration of a Tax ID when a business halts operations, provided the tax office is notified within 30 days.
The legislation is designed to expand Nigeria’s tax base, increase compliance, and boost government revenue. Experts believe the reform could significantly reduce tax evasion and enhance fiscal transparency.
Financial institutions are expected to upgrade their systems and processes ahead of the January 2026 enforcement date.
