Starting January 1, 2026, all Nigerians and non-residents will be required to have a Tax Identification Number (Tax ID) to open or operate bank accounts.

This requirement comes following the passage of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.

Under Section 8(2) of the Act, a Tax ID will be compulsory not only for banking but also for insurance, stockbroking, and other financial services. The law also extends this obligation to contracts with both federal and state governments.

For non-residents, Section 6(1) mandates registration for tax purposes, requiring them to obtain a Tax ID if they provide taxable goods or services or earn income within Nigeria.

To ensure compliance, Section 7(3) allows tax authorities to assign a Tax ID to individuals or entities that fail to register. The Act also permits suspension or deregistration of a Tax ID if a business halts operations temporarily or permanently, provided the tax authorities are notified within 30 days.

The legislation aims to broaden Nigeria’s tax base and enhance revenue collection. Analysts suggest that the policy could lead to a significant improvement in nationwide tax compliance.

Financial institutions are expected to update their systems and processes in preparation for the January 2026 rollout.