Esther Imonmion
Beginning January 1, 2026, Nigerians and non-residents will not be able to open or operate bank accounts without presenting a Tax Identification Number (Tax ID), under a new directive tied to the Nigeria Tax Administration Act, 2025.
The Act, recently signed into law, makes it mandatory for every “taxable person” to register with the relevant tax authority and obtain a Tax ID. The requirement also extends to non-resident individuals and entities supplying taxable goods or services in Nigeria.
According to the law, a Tax ID will be required not only for banking but also for accessing insurance services, trading in the stock market, carrying out investment transactions, and entering contracts with government ministries, departments and agencies.
Officials say the measure is designed to expand Nigeria’s tax net, reduce evasion, and improve compliance. It also seeks to harmonize identification across the financial and tax system, streamlining processes that have long been criticized for duplication.
However, concerns are mounting about the impact on financial inclusion. Analysts warn that millions of Nigerians, particularly those in the informal sector or rural areas, may struggle to obtain a Tax ID before the deadline. Banks are also expected to request updates from existing account holders, potentially affecting large numbers of customers who have not yet complied.
The Federal Inland Revenue Service (FIRS) and state revenue authorities are expected to drive the rollout, while banks and other financial institutions will enforce compliance by January 2026.
With the clock ticking, experts advise individuals, companies, and foreign service providers to begin the registration process early to avoid disruption.