Banks in Nigeria will soon be required to request a Tax Identification Number (TIN) from all taxable individuals, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. This move is part of the Federal Government’s new tax administration framework, set to take effect on January 1, 2026. Oyedele explained that a taxable person is anyone who earns income through trade, business, or any economic activity, and therefore, banks must request a tax ID from such individuals.
The Nigerian Tax Administration Act (NTAA), which comes into effect on January 1, 2026, makes the possession of a tax ID mandatory for all taxable individuals. Oyedele cited Section 4 of the NTAA, which provides the formal legal backing for the enforcement of this policy. Although the policy has existed since the 2020 Finance Act, the NTAA now provides the necessary framework for its implementation.
Income earners and businesses that have already been issued TINs will not need to obtain new tax IDs. However, individuals who do not earn an income, such as students and dependents, will be exempted from needing a tax ID to maintain a bank account. Oyedele emphasized that this exemption applies to individuals who do not engage in any economic activity.
The new tax administration framework is part of a broader effort to reform Nigeria’s tax system. In January, President Tinubu signed four landmark tax reform bills into law, aimed at unifying the country’s fragmented tax system and promoting transparency. The bills are designed to ease the burden on working families, small businesses, and low-income earners, while eliminating inefficiencies that have long plagued Nigeria’s fiscal structure.
The implementation of the new tax administration framework is expected to have a significant impact on Nigeria’s economy. With a more streamlined and efficient tax system, the government aims to increase revenue collection and promote economic growth. As the January 2026 deadline approaches, banks and financial institutions are expected to comply with the new regulations, and taxable individuals are advised to obtain their TINs to avoid any disruptions to their banking services.