From January 1, 2026, Nigerians must present a Tax ID to access financial services.
The new law expands tax obligations to residents, non-residents, businesses, and government contracts nationwide.
Starting 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, as well as access other financial services, under the Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu.
According to Section 8 (2) of the Act, the requirement applies not only to banking but also to insurance, stock-broking, and allied financial services.
“A person engaged in banking, insurance, stock-broking, or other financial services in Nigeria shall ensure that every taxable person provides a Tax ID,” the law states.
The Act also makes a Tax ID compulsory for individuals or businesses entering into contracts with the federal and state governments.
The law expands tax obligations to cover non-residents who supply goods or services to Nigeria or derive income from the country. Under Section 6(1), such persons must register for tax purposes and obtain a Tax ID.
To prevent avoidance, Section 7(3) empowers tax authorities to automatically assign a Tax ID to any individual or entity that fails to register.
For businesses that cease operations, the law provides an allowance to suspend or deregister their Tax ID. Holders must notify the relevant tax authority within 30 days of temporarily or permanently halting trade.
“Where a taxable person temporarily ceases to carry on a trade or business in Nigeria, the taxable person shall notify the relevant tax authority of its intention to suspend its registration for tax purposes within 30 days,” the Act states.
Banks and other financial institutions are expected to begin adjusting systems and processes to enforce Tax ID verification well before the implementation date.
