The Federal Government has announced that from January 1, 2026, individuals and businesses classified as taxable persons will be unable to operate bank accounts, insurance policies, pension accounts, or investment accounts without a Tax Identification Number (Tax ID).
The directive was highlighted in a document titled “New Tax Acts and Tax ID – What You Need to Know”, released by the Presidential Fiscal Policy and Tax Reform Committee and shared by its chairman, Taiwo Oyedele.
The requirement stems from the Nigeria Tax Administration Act (NTAA), which makes the use of Tax IDs mandatory for certain financial transactions.
According to the Committee, a “taxable person” refers to anyone engaged in trade, business, or economic activity to earn income.
Banks and financial institutions are therefore obligated to request a Tax ID before granting access to financial services.
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While some Nigerians have expressed concern over the new directive, the Committee clarified that this is not a new policy.
The rule has been in effect since the Finance Act 2019, which amended Section 49 of the Personal Income Tax Act, requiring individuals opening business accounts to present a Tax Identification Number (TIN) from January 2020.
The NTAA now consolidates and strengthens that requirement under a harmonised “Tax ID.”
For individuals, the National Identification Number (NIN) will serve as the Tax ID, while for businesses, the Corporate Affairs Commission (CAC) registration number will apply. Those who already have a TIN will not need to register again.
The government further explained that obtaining a Tax ID will be free, requires no biometric registration, and can be processed online or through the Federal Inland Revenue Service (FIRS), State Internal Revenue Services, or the Joint Tax Board (JTB).
Nigerians in the diaspora can also apply using their NIN for banking or investment purposes in the country.
According to the NTAA, failure to comply by the January 2026 deadline could result in sanctions.
However, individuals who do not earn income and are therefore not taxable are exempt.
Officials insist the policy aims to simplify identification, reduce duplication, close tax evasion loopholes, and build a fairer system, ensuring that those who earn taxable income contribute accordingly while protecting low-income Nigerians.
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