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Tinubu’s Government Makes Tax Identification Compulsory for opening New Bank Accounts, Contracts, and Financial Services
The Federal Government has announced that, beginning January 1, 2026, Nigerians will be required to obtain a Tax Identification Number (Tax ID) before they can open new bank accounts or access several financial and government services.
The directive is contained in the Nigeria Tax Administration Act, 2025, which was recently signed into law by President Bola Tinubu.
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Under Part II, Section 4 of the Act, all taxable individuals and organizations must register with the relevant tax authority to obtain a Taxpayer Identification Card. The provision applies not only to citizens but also to non-resident individuals and foreign entities supplying taxable goods or services in Nigeria.
The law mandates every ministry, department, and agency across federal, state, and local governments to secure a Tax ID. It also empowers tax authorities to issue an ID on behalf of anyone who fails to apply or to reject applications where necessary, with applicants required to be notified of any refusal within five working days.
Section 8 of the Act makes possession of a Tax ID a prerequisite for securing government contracts, conducting banking transactions, obtaining insurance, and participating in the stock market or other financial services.
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Furthermore, the legislation provides for temporary suspension or permanent deregistration of Tax IDs if holders cease business operations.
In a related development, the Nigeria Revenue Service Establishment Act, 2025, also signed into law, grants wide-ranging powers to the Service’s Executive Chairman, who will head its Governing Board. The board will include representatives from the Ministries of Finance, National Planning, Justice, Petroleum, as well as the Central Bank of Nigeria, Nigeria Customs Service, and the Corporate Affairs Commission, among others.
The government says the reforms are aimed at strengthening Nigeria’s tax system, broadening the tax base, and curbing revenue leakages.
