Nigerian FG announces new requirement for opening bank account
The Nigerian Federal Government has announced that Tax Identification (Tax ID) will become compulsory for all Nigerians involved in banking and allied services from January 1, 2026.
The new directive is part of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu. Under Part II Section 4 of the Act, all taxable individuals and organizations must register with the relevant tax authority and obtain a Taxpayer Identification Card.
The Act further stipulates that every ministry, department, and agency at federal, state, or local levels must also secure a Tax ID. Non-resident individuals or entities supplying taxable goods or services in Nigeria are equally mandated to obtain one.
The law empowers tax authorities to issue a Tax ID on behalf of those who fail to apply, or to reject applications if available information warrants such action. Applicants must be notified of any refusal within five working days.
In addition, Section 8 of the Act makes possession of a Tax ID a prerequisite for government contracts, banking transactions, insurance, stock market participation, and other financial services.
The legislation allows for temporary suspension or permanent deregistration of Tax IDs if holders cease business operations.
Meanwhile, the Nigeria Revenue Service Establishment Act, 2025, vests enormous powers in the Service’s Executive Chairman, who will also chair its Governing Board. The board will include representatives from the Ministries of Finance, National Planning, Justice, Petroleum, the Central Bank, Customs, the Corporate Affairs Commission, and other key institutions.
