New Law: Nigerians Must Obtain Tax ID/TIN to Operate Bank Accounts, Businesses by 2026
Beginning January 1, 2026, Nigerians will no longer be able to open or operate bank accounts, run businesses, or access financial services without a Taxpayers Identification Number (Tax ID or TIN).
This landmark reform, contained in the newly signed Nigeria Tax Administration Act, 2025, is being described as the most significant change in Nigeria’s financial and tax system in decades.
WHAT THE LAW SAYS
Signed into law by President Bola Ahmed Tinubu in August, the Act makes it compulsory for:
Individuals: No bank account can be opened or operated without a Taxpayers Identification Number (TIN).
Businesses: From roadside traders to multinationals, all must register for a Taxpayers Identification Number (TIN).
Government Agencies (MDAs): Required to obtain Tax IDs before entering contracts.
Foreign Suppliers: Must register with the new Nigeria Revenue Service (NRS) before doing business in Nigeria.
Under Section 8(2) of the Act, banks, insurers, and stockbrokers will be barred from providing services to anyone without a valid Tax ID.
WHY THE REFORM MATTERS
Nigeria has long struggled with weak tax compliance:
Nigeria – 10% tax-to-GDP ratio
Ghana – 13%
Kenya – 16%
South Africa – 27%+
Global Average – 34%
Out of 200 million+ citizens, only 10 million are registered taxpayers, while more than 60 million Nigerians hold bank accounts.
This gap explains why revenue remains poor despite Nigeria’s economic size. Past reforms like the Bank Verification Number (BVN) and the National Identification Number (NIN) improved identity management. Now, the Tax ID mandate is seen as the next bold step to widen the tax net and cut reliance on oil.
The Act also abolishes the Federal Inland Revenue Service (FIRS), replacing it with the Nigeria Revenue Service (NRS) — a major institutional shake-up.
IMPLICATIONS FOR CITIZENS & BUSINESSES
Bank Customers: No deposits, withdrawals, or transfers without a Tax ID.(TIN)
Small Businesses: Informal traders must register, creating new compliance obligations.
Corporate Nigeria: Stricter oversight will reduce tax loopholes.
Foreign Firms: Non-resident suppliers must comply before doing business in Nigeria.
PUBLIC REACTIONS
A civil servant in Abuja expressed concern:
“It’s good for accountability, but I fear delays and corruption in the process.”
A Lagos-based tax consultant welcomed it:
“This is long overdue. Without linking tax IDs to financial services, compliance will never improve.”
RISKS AND CONCERNS
Exclusion of the Poor: With 38 million adults unbanked, the reform could sideline vulnerable groups.
Bureaucratic Delays & Corruption: Risk of officials exploiting the registration process.
Awareness Gap: Millions may miss the deadline, creating chaos at tax offices.
5 THINGS NIGERIANS MUST KNOW ABOUT THE TAX ID LAW
1️⃣ Effective Date: January 1, 2026 — no Tax ID, no financial services.
2️⃣Who Must Register: Individuals, businesses, MDAs, foreign suppliers. 3️⃣Where It Applies: Banks, insurance, stock market, contracts, and business registration. 4️⃣Why It Matters: Expands tax net; boosts revenue for development.
5️⃣Risks: Exclusion, corruption, delays, low awareness.
Q & A for Nigerians
Q1: What is a Taxpayers Identification Number (TIN)? A unique number issued by the FIRS for tax purposes,likely linked to BVN and NIN.
Q2: Who needs it? Everyone— individuals, businesses, MDAs, and foreign suppliers.
Q3: When does it take effect? From January 1,2026.
Q4: How to register? The NRS will publish guidelines.Expected steps include: You can apply Online and get the Tax ID(Tax Identification Number)delivered to your email. To see the process to get your TIN online, Read: How to apply and get your Taxpayers Identification Number (TIN)Online
Visit any FIRS office/center with your state
Fill application form
Provide NIN, BVN, valid ID, address, and business documents (if applicable)
After that you will be issued Tax ID or Taxpayers Identification Number (TIN)
Q5: What happens if I don’t register? You will be unable to operate bank accounts,access insurance/stockbroking, sign government contracts, or run a registered business.
From January 2026, tax compliance will become a ticket to financial access in Nigeria. This reform is a test of whether government can implement change without worsening hardship. For citizens, it is both a challenge and a call to prepare before the deadline.
