Inside Nigeria: New Requirement To Open, Operate Bank Account Emerged

News Update

From January 1, 2026, Nigerians and non-residents will not be able to open or operate a bank account without a Tax Identification (Tax ID).

The new rule is contained in the Nigeria Tax Administration Act, 2025, which was recently signed into law by President Bola Tinubu.

The Act also extends the requirement to other financial and business dealings, making a Tax ID compulsory for insurance, stock market transactions, and contracts with federal and state governments.

According to the law, every taxable person must register with the relevant authority to obtain a Tax ID card.

Ministries, departments, and agencies at federal, state, and local levels are equally expected to secure Tax IDs.

Non-residents who supply taxable goods and services to persons in Nigeria will also be required to register and pay tax in the country.

The Act empowers tax authorities to issue a Tax ID to people who fail to apply, or to refuse an application if available information warrants it, with feedback to be given within five working days.

Business owners who suspend or permanently close their operations must notify the tax authority within 30 days, after which their Tax ID will be marked dormant or deregistered.

The same legislation establishes the Nigeria Revenue Service, with its Executive Chairman serving as head of the Governing Board for a renewable four-year term.

The Service will be funded through a four percent deduction from all revenues it collects, excluding petroleum royalties.