The Federal Government of Nigeria has announced a new financial policy that will require all Nigerians to present a Tax Identification Number (TIN) to open or maintain bank accounts starting January 1, 2026. This initiative aims to boost tax compliance, curb illicit financial flows, and expand the country’s revenue base.
Under the recently signed Nigeria Tax Administration Act (NTAA, 2025), all taxable individuals and organizations must provide a valid Tax ID for various financial activities, including opening bank accounts, pension accounts, insurance policies, and investment accounts.
Here are five key points to understand about this new requirement:
- Who Must Provide a Tax ID: The requirement applies to taxable persons, including salary earners, entrepreneurs, freelancers, and registered companies. Exemptions exist for those not earning taxable income, such as students and retirees living on non-taxable pensions.
- What Qualifies as a Tax ID: For individuals, the National Identification Number (NIN) from the National Identity Management Commission (NIMC) serves as the Tax ID. For businesses, the Corporate Affairs Commission (CAC) registration number is used. Existing TINs from the Federal Inland Revenue Service (FIRS) remain valid.
- Effective Date and Enforcement: The policy takes effect on January 1, 2026. Banks will require a Tax ID for account openings, and existing account holders classified as taxable persons may need to update their records.
- Why the FG Introduced the Requirement: The policy aims to expand the tax base, enhance transparency, combat financial crimes, and improve public revenue for infrastructure, education, healthcare, and social programs.
- What Nigerians Should Do to Prepare: Verify your NIN, confirm your CAC registration number, keep your TIN safe, avoid scams regarding new Tax ID cards, and seek clarification from the FIRS or financial institutions if needed.
This initiative is expected to significantly reduce loopholes in tax collection, impacting an estimated 28 million registered bank account holders in Nigeria.
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