FG Makes Tax ID Mandatory for Nigerians to Operate Bank Accounts

• The federal government has announced that all taxable Nigerians must possess a Tax Identification Number to operate bank accounts from January 1, 2026, as part of sweeping tax reforms.

The federal government has said every taxable Nigerian will be required to have a Tax Identification Number, also known as a Taxpayer Identification Number, to operate bank accounts in the country when new tax reforms take effect on January 1, 2026.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this in an interview shared on his X account on Thursday. He explained that the requirement is backed by Section 4 of the Nigerian Tax Administration Act, which becomes enforceable from January 2026.

According to Oyedele, the law mandates all taxable individuals and entities to register and obtain a tax ID, which banks will be required to request before allowing affected customers to fully operate their accounts.

He clarified, however, that the rule will not apply to students and dependents, noting that individuals who do not earn income will be exempt from the requirement.

“A taxable person is anyone who earns income through trade, business, or any economic activity. So banks must request a tax ID from taxable persons. This means that individuals who do not earn an income, such as students and dependents, do not need to obtain a tax ID,” he said.

Oyedele added that the policy itself is not entirely new, as it was introduced under the 2020 Finance Act. However, the Nigerian Tax Administration Act now provides the legal framework for its full enforcement.

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He also stated that individuals and businesses that already have Tax Identification Numbers will not be required to obtain new ones.

“As of January 2026, any taxable entity without a tax ID may have difficulty running their bank account in the near future,” he warned.

The clarification comes amid growing concerns among Nigerians that bank accounts without tax IDs could soon face restrictions.

It will be recalled that President Bola Ahmed Tinubu signed new tax laws into effect in June 2025, with implementation scheduled to begin in January 2026.