Starting January 1, 2026, all Nigerians and non-residents will be required to obtain a Tax Identification Number (Tax ID) to open or operate bank accounts
This requirement comes following the passage of the Nigeria Tax Administration Act, 2025, which was recently signed into law by President Bola Tinubu.
Under Section 8(2) of the Act, a Tax ID will be mandatory not only for banking but also for insurance, stockbroking, and other financial services. The requirement also applies to contracts with federal and state governments.
For non-residents, Section 6(1) stipulates that anyone supplying taxable goods or services, or earning income from Nigeria, must register for tax purposes and obtain a Tax ID.
To ensure compliance, Section 7(3) grants tax authorities the power to assign Tax IDs to individuals or entities that fail to register. The Act also allows for suspension or deregistration of a Tax ID if a business temporarily or permanently ceases operations, provided authorities are notified within 30 days.
The legislation is designed to expand Nigeria’s tax base and strengthen revenue collection. Analysts say the new policy could significantly enhance tax compliance nationwide.
Financial institutions are expected to update their systems and procedures in preparation for the January 2026 implementation.
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