From January 1, 2026, every Nigerian and foreigner will need a Tax Identification Number (Tax ID) in order to open or operate a bank account.
This requirement is part of the Nigeria Tax Administration Act, 2025, which President Bola Tinubu recently signed into law. Section 8(2) of the Act specifies that financial services such as banking, insurance, and stockbroking must demand a Tax ID. It also insists this rule apply when entering contracts with either federal or state governments.
Non‐residents who supply taxable goods or services in Nigeria or earn income within the country must register for tax purposes and obtain a Tax ID under Section 6(1). If any individual or business fails to register, tax authorities may assign a Tax ID to them automatically, as allowed under Section 7(3). The law also allows the suspension or cancellation of a Tax ID if a business stops operating temporarily or permanently, but only if tax authorities are informed within thirty days.
The purpose behind this law is to broaden Nigeria’s tax base and increase government revenue. Experts say that the measure could lead to much better compliance with tax obligations across the country. Banks and other financial institutions have been urged to update their systems and processes so they will be ready when the new rules come into effect in January.
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