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 requirement is part of the Federal Government’s new tax administration framework, which will take effect on 1 January 2026. The Nigerian Tax Administration Act (NTAA), also effective from that date, makes possession of a tax ID mandatory for anyone who earns income through trade, business, or any economic activity. Section 4 of the NTAA provides the formal legal backing for enforcing this policy.
The policy, originally introduced in the 2020 Finance Act, now has a concrete implementation framework under the NTAA. Income earners and businesses that already hold TINs will not need to obtain new tax IDs. However, individuals who do not earn an income—such as students and dependents—are exempt from the requirement, provided they do not engage in any economic activity. Oyedele emphasized that this exemption applies only to those who are not involved in any income‑generating 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, aiming to unify the country’s fragmented tax structure, promote transparency, and ease the burden on working families, small businesses, and low‑income earners. These reforms seek to eliminate long‑standing inefficiencies in Nigeria’s fiscal architecture.
With a more streamlined and efficient tax system, the government expects to increase revenue collection and stimulate economic growth. As the 1 January 2026 deadline approaches, banks and financial institutions must comply with the new regulations, and taxable individuals are advised to obtain their TINs to avoid any disruption to their banking services.
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