FG has amde tax ID mandatory for all Nigerians engaging in financial transactions from 2026.
NaijaOnPoint Nigeria reports that the Federal Government has announced that possession of a Taxpayer Identification Number (Tax ID) will become compulsory for all taxable Nigerians, as well as individuals and businesses engaging in banking, insurance, stock trading, and other financial services.
The directive, which takes effect from January 1, 2026, is contained in the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu. The law is aimed at modernizing tax administration, widening the tax net, and boosting government revenue.
According to Part II, Section 4 of the Act, every taxable person must register with the relevant tax authority and obtain a Taxpayer Identification Card for compliance. The rule also applies to all ministries, departments, and agencies across federal, state, and local governments.
The Act further extends to non-resident individuals and companies supplying taxable goods or services in Nigeria, mandating them to register for a Tax ID under Section 6 (1).
In addition, Section 7 (3) empowers tax authorities to issue Tax IDs to individuals or entities who fail to apply, while also granting them the discretion to deny issuance based on available information—though applicants must be informed of such rejections within five working days.
The legislation ties the Tax ID directly to government contracts and financial participation. Under Section 8, a Tax ID will be required to bid for federal or state contracts, open bank accounts, or access other financial services once the law comes into force.
For businesses that suspend or cease operations, the Act provides mechanisms for either temporary suspension (dormant status) or full deregistration of the Tax ID, provided notification is made within 30 days of closure.