From January 1, 2026, all Nigerians will be required to obtain a Tax Identification Number (Tax ID) to access banking and other financial services.
This follows the signing of the Nigeria Tax Administration Act, 2025 by President Bola Tinubu, which makes Tax IDs compulsory for both individuals and organizations.
Under Part II Section 4 of the Act, every taxable person or entity must register with the relevant tax authority and secure a Taxpayer Identification Card. The rule applies not only to citizens and businesses but also to ministries, departments, agencies, and even non-resident companies providing goods or services in Nigeria.
The law further states that:
- A Tax ID will be required for government contracts, banking transactions, insurance, stock trading, and other financial services.
- Tax authorities can issue a Tax ID on behalf of those who fail to apply or reject applications if the information provided is insufficient. Applicants must be informed of any rejection within five working days.
- Tax IDs may be temporarily suspended or permanently deregistered if the holder ceases business operations.
Meanwhile, the Nigeria Revenue Service Establishment Act, 2025 gives sweeping powers to the Service’s Executive Chairman, who will also head its Governing Board. The board will include representatives from the Ministries of Finance, National Planning, Justice, Petroleum, the Central Bank, Customs, and the Corporate Affairs Commission, among others.
The Federal Government says the move is aimed at strengthening tax compliance, widening Nigeria’s revenue base, and ensuring transparency in financial transactions.