From January 1, 2026, Nigerians and non-residents will no longer be able to open or operate bank accounts without a valid Tax Identification Number (Tax ID).
The new requirement is part of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.
The Act makes Tax IDs compulsory not only for banking but also for insurance, stock market dealings, and contracts with federal and state governments. All taxable persons are mandated to register with the relevant authority to obtain a Tax ID card, while ministries, departments, and agencies across all levels of government must also comply.
Non-residents who provide taxable goods and services in Nigeria are equally required to register and pay applicable taxes.
Under the law, tax authorities may issue Tax IDs to individuals who fail to apply, or reject applications if information provided is insufficient—decisions must be communicated within five working days. Business owners who suspend or close operations must notify tax authorities within 30 days to have their Tax IDs marked dormant or deregistered.
The legislation also establishes the Nigeria Revenue Service, with an Executive Chairman heading its Governing Board for a renewable four-year term. The Service will be funded through a four percent deduction from all revenues collected, excluding petroleum royalties.