Nigeria has introduced a new requirement for anyone seeking to open or operate a bank account in the country. Effective January 1, 2026, all Nigerians and non‑residents must obtain a Tax Identification Number (Tax ID). This follows the enactment of the Nigeria Tax Administration Act 2025, signed into law by President Bola Tinubu, which makes a Tax ID compulsory for a range of financial services—including banking, insurance, and stock broking—and for contracts with federal and state governments.
The Act also extends the requirement to non‑residents who supply taxable goods and services or earn income from Nigeria; they must register for tax purposes and obtain a Tax ID. Section 8(2) of the Act stipulates that a Tax ID is a prerequisite for accessing financial services, while Section 6(1) mandates registration for non‑residents engaged in taxable activities or earning Nigerian income. To ensure compliance, tax authorities are empowered to assign a Tax ID to individuals or entities that fail to register. The legislation further allows for the suspension or deregistration of a Tax ID if a business ceases operations temporarily or permanently, provided the tax authorities are notified within 30 days.
The introduction of the Tax ID requirement is expected to improve tax compliance nationwide and boost revenue collection. Financial institutions are anticipated to adjust their systems and processes ahead of the January 2026 rollout. As the deadline approaches, it is essential for individuals and businesses to be aware of the new requirement and take the necessary steps to comply, reinforcing the government’s effort to strengthen the country’s tax administration framework.
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