FG Introduces New Requirement To Open, Operate Bank Accounts
The Federal Government has announced a new banking regulation that will make it mandatory for Nigerians and non-residents to present a valid Tax Identification Number (Tax ID) before they can open or operate any bank account in the country.
The directive, contained in the newly signed Nigeria Tax Administration Act, 2025, will take effect from January 1, 2026. President Bola Ahmed Tinubu recently assented to the law, which seeks to expand the country’s tax base and improve compliance.
According to the Act, the Tax ID requirement will not be limited to bank accounts but will also apply to insurance services, stock market transactions, and contracts with federal or state governments.
The law further mandates every taxable individual, business, and even government ministry, department, or agency at federal, state, and local levels to register and obtain a Tax ID from the relevant authority. Non-residents who supply taxable goods or services in Nigeria are also required to register and pay the appropriate taxes.
To enforce compliance, tax authorities have been empowered to automatically issue Tax IDs on behalf of those who fail to apply correctly, or reject applications with incomplete information, with responses expected within five working days. Business owners must also notify tax authorities within 30 days if they suspend or close operations so their Tax IDs can be made dormant or deregistered.
The Act also establishes the Nigeria Revenue Service (NRS), which will oversee tax collection nationwide. The agency will be headed by an Executive Chairman on a renewable four-year tenure and funded through a 4% deduction from all revenues it collects, excluding petroleum royalties.
This development means that from January 2026, Nigerians and foreigners alike will no longer be able to open or operate bank accounts without a valid Tax ID, marking a significant shift in the country’s financial and tax administration system.
