The Federal Government of Nigeria has issued a directive requiring all taxable individuals to obtain a Taxpayer Identification Number (TIN) to operate bank accounts, effective January 1, 2026, as part of broader tax reforms aimed at enhancing compliance and revenue collection.
This policy stems from the newly signed Nigerian Tax Administration Act (NTAA), which strengthens existing provisions under the Finance Act of 2020, mandating banks to request Tax IDs from taxable persons before allowing account operations or transactions.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, clarified the scope in a recent interview shared on his X account, stating, “A taxable person is anyone who earns income through trade, business, or any economic activity.” He emphasized, “Banks must request a tax ID from taxable persons. This means that individuals who do not earn an income, such as students and dependents, do not need to obtain a tax ID.”
Oyedele further warned, “Any taxable entity without a tax ID may have difficulty running their bank account in the near future,” highlighting potential restrictions on banking activities for non-compliant individuals and businesses.
The NTAA expands Tax ID requirements beyond banking to include insurance policies, pension contributions, and investments, building on reforms signed into law by President Bola Tinubu in June 2025.
Enforcement begins January 1, 2026, with a six-month grace period beforehand for awareness campaigns and system upgrades by the Nigeria Revenue Service (NRS), allowing those with existing TINs—particularly businesses—to continue seamlessly without re-registration.
Financial institutions must verify Tax IDs linked to National Identification Numbers (NIN) for individuals and unincorporated businesses, aiming to integrate Nigeria’s informal economy into the formal tax net and create a comprehensive taxpayer database.
This move addresses public concerns over account freezes, as Oyedele noted the policy’s continuity from 2020 while providing a robust legal framework under the NTAA.
