BREAKING: Nigeria mandates Tax ID for Bank Accounts, Financial Transactions from January 2026

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Beginning January 1, 2026, all Nigerians and non-residents will be required to present a Tax Identification Number (Tax ID) to open or operate bank accounts in the country.

The new directive stems from the recently enacted Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu.

According to the Act, Section 8(2) provides that “a Tax Identification Number shall be mandatory for access to banking, insurance, stockbroking, and all other financial services, and shall also be required for contracts and transactions with federal and state governments.

For foreign individuals and businesses, the law also sets clear obligations. Section 6(1) specifies that “non-residents supplying taxable goods and services in Nigeria or deriving income from Nigeria shall register for tax purposes and obtain a Tax Identification Number.”

To ensure compliance, Section 7(3) empowers tax authorities to act proactively. “Where an individual or entity fails to register, the relevant tax authority may assign a Tax Identification Number,” the law states. It further provides that a Tax ID may be suspended or deregistered if a business halts operations temporarily or permanently, provided the tax office is notified within 30 days.

The Federal Government explained that the new law is designed to widen Nigeria’s tax base and improve revenue performance. “This legislation is aimed at expanding the tax net and significantly boosting revenue collection across the country,” the statement added.

Analysts have welcomed the move, noting that it could strengthen fiscal stability and improve tax compliance. Financial institutions are now expected to reconfigure their systems and processes in readiness for the January 2026 rollout.

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