From January 1, 2026, Nigerians and non-residents will be unable to open or operate bank accounts without a valid Tax Identification Number (Tax ID).

The new requirement is contained in the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.

Beyond banking, the law makes a Tax ID compulsory for insurance policies, stock market transactions, and contracts with federal, state, or local governments. Every taxable person must register with the relevant authority to obtain a Tax ID card, while ministries, departments, and agencies are also mandated to secure Tax IDs.

Non-residents supplying taxable goods and services to Nigeria will be required to register and pay tax in the country. The Act empowers tax authorities to issue Tax IDs to individuals who fail to apply, or to reject applications if warranted by available information, with a mandatory response time of five working days.

Business owners who suspend or permanently close operations must notify the tax authority within 30 days, after which their Tax ID will be marked dormant or deregistered.

The legislation also establishes the Nigeria Revenue Service (NRS), which will oversee tax administration. The agency’s Executive Chairman will head its Governing Board for a renewable four-year term.

To fund its operations, the NRS will retain four percent of all revenues collected, excluding petroleum royalties.