Do You Need a Tax ID for a Bank Account? FG Names Nigerians Who Must Comply and Those Exempted
- Many Nigerians are confused about how the new tax law will affect the operation of their bank accounts from January 1, 2026
- Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has provided explanations to address the confusion
- He also shed light on who will need a Tax Identification Number (TAX ID) and who will not when using bank accounts in Nigeria
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Taiwo Oyedele, the chairman Presidential Fiscal Policy and Tax Reforms Committee, has provided clarification on whether a Tax Identification Number (Tax ID) is now required to operate a bank account amid widespread confusion on social media.
In a question and answer post shared on YouTube, Oyedele said that the tax ID requirement for bank account is not new and does not apply to everyone.
Source: UGC
He explained that people who do not earn income, including students and dependents can continue using their bank accounts without a Tax ID.
However, the rule applies only to taxable persons earning income through trade, business or other economic activity under the Nigeria Tax Administration Act (NTAA).
“Banks must request a tax ID from taxable persons. But individuals with no source of income are exempt.
"The provision has existed since the Finance Act 2020, which amended Section 49 of the Personal Income Tax Act. The NTAA, now in force, consolidates identity management across agencies including the FIRS, Joint Tax Board (JTB) and state revenue services."
Tax ID: What Nigerians must know
Oyedele added that “Tax ID” replaces the older “TIN” as the government moves towards a unified identity system.
He added:
"Tax ID is simply a unified term. Previously, different agencies like FIRS, JTB and state IRS issued separate things. In the nearest future, your NIN for individuals or CAC registration number for companies will serve as your tax ID. This reduces duplication and simplifies compliance.”
How to obtain tax ID
On how to obtain a tax ID he explained that Individuals with an existing TIN do not need to reapply, and the system requires no biometric capture or physical cards stressing that for new applicants registration is free on the JTB portal or at FIRS and state IRS offices.
He continued:
"Your existing TIN remains valid. If you already have one, there's no need to register again. there's no need to do biometrics for the tax ID and it is not necessarily a physical card. The tax ID is simply a unique number linked to your identity.
"You can apply online at the JTB registration portal tin.jtb.gov.ng or visit any FIRS or NRS, state IRS or JTB office and it is completely free of charge. Please don't pay touts or any official.”
Regarding businesses, he said:
“Every business must have a tax ID. For small unregistered businesses, your personal tax ID is enough. For companies, NGOs or incorporated trustees, a TIN is automatically generated when you register with CAC. If your business was registered long ago without a TIN, simply visit FIRS or apply online with your CAC documents.”
For Nigerians in the diaspora, He noted that they may register using their NIN if their accounts are linked to income earned in Nigeria, though a Tax ID is not required for accounts that do not receive business or income-related inflows.
He continued:
"Foreign companies must also register unless they earn only passive income such as dividends or royalties. Companies effectively managed from Nigeria are treated as tax-resident.
"Government ministries, agencies and state-owned enterprises are similarly required to obtain Tax IDs under Section 5 of the NTAA."
Source: Instagram
No tolerance for defaulters
Oyedele stressed that taxable persons must comply to have a TIN by January. 1, 2026, but adding that most already possess TINs under previous laws. Non-compliant taxpayers may face restrictions on bank account operations.
The committee chairman dismissed claims circulating online that the government plans to withdraw money from citizens’ bank accounts through the Tax ID system, noting that enforcement actions require a legal process and court order.
He said:
“Even if you have millions in your account, your money is safe. And finally, how does all of this benefit ordinary Nigerians? It is all about building a fairer, more transparent and simplified system for everyone.
"When the system is fully built, your NIN or CAC number becomes your tax ID with no extra paperwork. It helps to close loopholes, enhances transparency, and ensures everyone who earns taxable income contributes their fair share while protecting low-income citizens who are exempt."
New tax law: what Nigerians must know
Earlier, Legit.ng reported that the new tax law exempts the income of workers earning the national minimum wage or less.
Anyone earning below N800,000 yearly pays no tax. Also, military officers’ wages and salaries are fully tax‑free.
A full breakdown of salary earners that must pay tax was provided.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
