FG Makes Tax ID Mandatory for Banking, Business Transactions from 2026 -

New Tax Administration Act requires all taxable persons, MDAs, and foreign suppliers to register

The Federal Government has made it compulsory for all taxable Nigerians to obtain a Tax Identification Number (Tax ID) before they can operate bank accounts, access insurance, stocks, or engage in allied financial services.

The provision is contained in the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu. The Act takes effect from January 1, 2026.

According to Part II, Section 4 of the legislation, “Every taxable person shall register with the relevant tax authority and obtain a Taxpayer Identification Card (Tax ID) for the purpose of compliance with tax obligations.” It further mandates that all ministries, departments, and agencies (MDAs) of government at federal, state, and local levels must also obtain Tax IDs.

Foreign suppliers also covered

Section 6 (1) of the Act requires non-resident persons supplying taxable goods and services in Nigeria to register for Tax IDs, as they are obligated to pay tax in the country.

Section 7 (3) empowers the relevant tax authority to issue a Tax ID to any person who should have applied but failed to do so. The authority is also permitted to refuse applications based on information available to it, provided the applicant is notified within five working days.

Tax ID now a condition for contracts and financial services

Under Section 8, the law makes a valid Tax ID:

A requirement for entering contracts with federal or state governments.
A mandatory condition to operate a bank account, insurance, stock, or allied financial services, effective January 2026.

The Act, however, provides for suspension or deregistration of a Tax ID if the holder temporarily or permanently ceases trade or business.

Temporary suspension and deregistration

Section 10 outlines the procedure for suspension or deregistration:

A taxpayer who temporarily ceases trade must notify the tax authority within 30 days, after which the Tax ID will be placed on “dormant” status.
A taxpayer who permanently ceases trade must also notify within 30 days, leading to full deregistration.

New Revenue Service with wide powers

The law also establishes the Nigeria Revenue Service (NRS), 2025, with its Executive Chairman serving as both Chief Executive and Governing Board Chairman.

The Board will include representatives from the: