The Federal Government has made it compulsory for all Nigerians and businesses to obtain a Tax Identification Number (Tax ID) starting January 1, 2026.
The new law ties Tax IDs to banking, contracts, and financial services access.
The Federal Government has announced that a Taxpayer Identification Number (Tax ID) will become compulsory for all Nigerians within the tax net, as well as for individuals and businesses seeking access to banking, insurance, stock trading, and related financial services.
The new directive, which takes effect on January 1, 2026, is contained in the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Ahmed Tinubu. The legislation is aimed at modernizing tax administration, widening the tax base, and boosting government revenue.
According to Part II, Section 4 of the Act, every taxable person must register with the appropriate tax authority and obtain a Tax ID to fulfil their tax obligations. The rule also applies to all ministries, departments, and agencies across federal, state, and local governments.
Non-resident individuals and foreign companies supplying taxable goods or services in Nigeria are also mandated to register for a Tax ID, in line with Section 6 (1). Where taxpayers fail to register voluntarily, Section 7 (3) empowers the authorities to issue one directly or decline an application based on verified information, with applicants to be notified of any denial within five working days.
The law makes the Tax ID a requirement for securing government contracts and for carrying out financial transactions such as opening or operating bank accounts. Businesses that suspend operations may have their Tax ID tagged as “dormant,” while permanent closure requires full deregistration within 30 days of notification.
