The Federal Government has mandated that beginning January 1, 2026, all Nigerians engaging in banking and related financial services must possess a Tax Identification Number (Tax ID).
This directive is contained in the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.
Under Part II, Section 4, the law requires all taxable individuals and organizations to register with the appropriate tax authority and obtain a Taxpayer Identification Card.
The Act further extends this obligation to every Ministry, Department, and Agency (MDA) at the federal, state, and local levels, as well as non-resident individuals or entities supplying taxable goods or services within Nigeria.
To enforce compliance, the law empowers tax authorities to either issue a Tax ID on behalf of those who fail to apply or reject applications where information provided is insufficient.
In cases of refusal, applicants must be duly notified within five working days.
Crucially, Section 8 of the Act makes a valid Tax ID a compulsory requirement for:
Government contracts
Banking transactions
Insurance services
Stock market participation
Other financial and allied services
The law also provides for the suspension or permanent deregistration of Tax IDs where businesses cease operations.
Meanwhile, the Nigeria Revenue Service Establishment Act, 2025, strengthens the institution’s powers.
It places significant authority in the hands of its Executive Chairman, who will also head the Service’s Governing Board.
The board will comprise representatives from the Ministries of Finance, National Planning, Justice, Petroleum, as well as the Central Bank, Customs, Corporate Affairs Commission, and other key agencies.
The Executive Chairman will serve a four-year renewable term, while the Service will be funded through a 4% deduction from collected revenues, excluding petroleum royalties.
Credit: Blueprint except headline
