Federal Government Makes Tax ID Mandatory for Bank Accounts, Contracts, and Financial Transactions Starting 2026

The Federal Government has announced a major shift in financial regulation, making the possession of a Tax Identification Number (Tax ID) mandatory for opening and operating bank accounts in Nigeria, effective January 1, 2026.

The new requirement is part of the Nigeria Tax Administration Act, 2025, which was signed into law by President Bola Tinubu on June 26, 2025. The law applies to both Nigerian citizens and non-residents, signaling a broad move to expand the country’s tax net and tighten financial oversight.

Under the new law, individuals and businesses will not be able to engage in banking activities, insurance, stock market transactions, or enter into contracts with federal and state governments without a valid Tax ID.

The Act mandates all taxable persons to register with the appropriate tax authority to obtain a Tax Identification Card. Additionally, ministries, departments, and agencies across all levels of government are also required to obtain Tax IDs.

In a bid to bring foreign businesses into the tax fold, the law also requires non-residents who supply taxable goods and services to Nigerian customers to register for tax and obtain a Tax ID.

Tax authorities have been given the power to issue Tax IDs to individuals who fail to apply, or to reject applications based on the available information. Authorities must respond to applications within five working days.

The legislation further requires business owners who suspend or permanently close their operations to notify the tax authority within 30 days, after which their Tax ID will be marked dormant or deregistered.