New law: Nigerians Must Get Tax ID to Run Bank Accounts, do Businesses, Others by 2026
- All taxable individuals and organisations in Nigeria are expected to obtain a Tax ID to engage in banking, financial services, or government contracts
- The Nigeria Tax Administration Act, 2025, also requires foreign entities supplying taxable goods or services in Nigeria to register for a Tax ID
- The Act allows for suspension or deregistration of the Tax ID if a person or business temporarily or permanently ceases operations
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Beginning January 1, 2026, all Nigerians involved in taxable activities will be required to obtain a Taxpayer Identification Number (Tax ID), according to the newly enacted Nigeria Tax Administration Act, 2025.
This regulation will apply to both individuals and organisations participating in banking, insurance, stock trading, and similar financial services.
Source: UGC
The law, which was recently signed by President Bola Tinubu, mandates under Part II, Section 4, that every eligible taxpayer must register with the appropriate tax authority and acquire a Tax ID to fulfil their tax obligations.
It stated:
“Every Taxable person shall register with the relevant Tax Authority and obtain a Taxpayer Identification Card (Tax ID) for the purpose of compliance with tax obligations.”
In addition, it extended this requirement to all ministries, departments or agencies of the federal, State or local government.
Foreign entities that provide taxable goods or services to individuals or businesses in Nigeria must also comply by registering for a Tax ID, as outlined in Section 6(1). These entities will be subject to Nigerian tax laws.
According to Section 7(3), tax authorities are granted the power to issue Tax IDs to individuals or businesses who have not registered voluntarily.
They also reserve the right to deny issuance based on existing information, but must notify the applicant within five business days if such a decision is made.
Section 8 of the Act makes possession of a Tax ID a prerequisite for entering into contracts with federal or state governments.
Furthermore, subsection 8(2) stipulates that no one will be permitted to open or operate a bank account or participate in financial sectors like insurance and stock trading without a valid Tax ID once the law takes effect.
There are also provisions for temporary or permanent suspension of Tax IDs. Section 10 allows individuals or businesses to inform the tax authority within 30 days if they intend to pause or cease operations.
Source: Facebook
In such cases, the Tax ID will be classified as “dormant” or fully deregistered, depending on the nature of the business closure.
This legislative move is expected to improve tax compliance and streamline revenue collection across Nigeria’s economic sectors.
9 major tax reforms signed into law
Meanwhile, Legit.ng earlier reported that President Bola Tinubu officially approved a set of widely discussed tax reform bills, marking a significant step in Nigeria’s fiscal policy.
The signing, which took place at the Presidential Villa on Thursday, June 26, saw four key bills become law: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
The bills were structured to completely revamp Nigeria’s tax system, replacing the current practice that has been in place since the military administrations.
Source: Legit.ng
