All You Need To Know as FG Says No Tax ID, No Bank Account by January 1, 2026
The Presidential Fiscal Policy and Tax Reform Committee has announced that from January 1, 2026.
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With the new law, taxable persons without a Tax Identification Number (Tax ID) will not be unable to operate bank accounts, insurance policies, pension funds, or investment accounts.
Taiwo Oyedele, chairman of the committee made this known in a Frequently Asked Questions (FAQ) document titled “New Tax Acts and Tax ID – What You Need to Know”
The document showed that the Nigeria Tax Administration Act (NTAA) makes it mandatory for taxable persons defined as individuals or entities engaged in trade, business, or income-generating activities to obtain a Tax ID.
Source: UGC
Banks and financial institutions will be required to request it from such persons.
Key highlights from the new tax law you need to know
Is it true that everyone must obtain a Tax ID before opening or continuing to operate a bank account?
Yes, but with clarifications. Section 4 of the NTAA requires all taxable persons—those engaged in trade, business, or income-generating activities—to register with the tax authority and obtain a Tax ID. Banks and financial institutions must request a Tax ID from such customers. However, individuals who do not earn income and are not taxable are not required to obtain one.
Is this requirement new?
No. It has been in effect since the Finance Act 2019, which amended section 49 of the Personal Income Tax Act. Since January 2020, individuals opening business accounts have been required to provide a TIN. The NTAA simply strengthens and harmonises this rule.
Why does the new law say “Tax ID” instead of TIN?
“Tax ID” is a unified term covering the different TINs issued by the FIRS, JTB, and State IRS. Going forward, individuals will use their NIN while companies will use their CAC RC number as their Tax ID, reducing duplication and simplifying compliance.
If I already have a TIN, do I need a new Tax ID?
No. Existing TINs remain valid. New applicants without a TIN will need their NIN (for individuals) or CAC documents (for companies) to process a Tax ID.
Will I need to queue for biometrics to obtain a Tax ID card?
No. The Tax ID is a unique number, not a physical card. It can be obtained free of charge online or at FIRS, State IRS, or JTB offices. Citizens are advised not to use touts or unofficial agents.
Does the Tax ID requirement also apply to businesses?
Yes. For unincorporated businesses, the owner’s personal Tax ID is sufficient. For companies, NGOs, and other registered entities, a TIN is automatically generated from CAC registration. Older businesses without a TIN can apply online or at the FIRS with CAC documents.
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What about Nigerians in the diaspora?
Nigerians abroad can obtain a Tax ID using their NIN for banking or investment purposes in Nigeria. A simplified process is available via the NIMC website.
Do foreign companies and non-resident entities need a Tax ID?
A8. Yes, if they conduct business in Nigeria. Non-resident companies supplying goods or services must register for a Tax ID. Those earning only passive income (dividends, interest, royalties, rent) may not need to register but must provide relevant information. Companies effectively managed or controlled in Nigeria are treated as residents and must comply.
Are government-owned enterprises and agencies exempt?
A9. No. Section 5 of the NTAA requires all ministries, departments, agencies, and government-owned enterprises at federal, state, or local levels to obtain a Tax ID.
What happens if a taxable person does not register by January 1, 2026?
They may be unable to operate bank accounts, insurance, pension, or investment accounts, and sanctions will apply under the NTAA. Non-taxable individuals are exempt
How will this benefit ordinary Nigerians?
The system simplifies identification, reduces duplication, and closes tax evasion loopholes. For most people, their NIN or CAC RC number will serve as a Tax ID with no extra paperwork. It ensures fairness by requiring only those earning taxable income to contribute, while shielding low-income citizens.
Source: Legit.ng
