5 Things to Know About FG Mandatory Tax ID Requirement for Bank Accounts
GoldenNewsNg reports that beginning January 2026, the Federal Government will enforce a new financial policy that makes it mandatory for all Nigerians to present a Tax Identification Number (TIN) to open or maintain bank accounts. The move, according to authorities, is aimed at boosting tax compliance, curbing illicit financial flows, and expanding the country’s revenue base. For millions of bank customers, this change raises important questions about what it means, how to comply, and the penalties for default.
The Federal Government of Nigeria has announced that starting January 1, 2026, all taxable persons must provide a valid Tax Identification Number (Tax ID) in order to open or operate bank accounts, pension accounts, insurance policies, and investment accounts. This move is part of the recently signed Nigeria Tax Administration Act (NTAA, 2025), which aims to strengthen compliance and expand the country’s tax base.
If you’re wondering how this affects you, here are five key things you need to know:
1. Who Must Provide a Tax ID
The requirement applies specifically to taxable persons, that is, individuals or organizations engaged in income-generating activities subject to tax. This includes salary earners, entrepreneurs, freelancers, and registered companies.
Ordinary Nigerians who are not earning taxable income, for example, students without side businesses or retirees living on non-taxable pensions, are exempt from the requirement.
2. What Qualifies as a Tax ID
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For individuals: The National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) will serve as the Tax ID.
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For businesses: The Corporate Affairs Commission (CAC) registration number will be used as the Tax ID.
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For those who already have a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS), that number remains valid.
This means there is no need to apply for a separate or new Tax ID if you already have a NIN or CAC registration number.
3. Effective Date and Enforcement
The new policy will officially take effect from January 1, 2026. From that date:
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Banks and financial institutions will require a Tax ID for account opening.
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Existing account holders classified as taxable persons may be asked to update their records with a Tax ID to continue operating their accounts.
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Insurance companies, pension fund administrators, and investment platforms will also integrate Tax ID verification into their onboarding processes.
4. Why the FG Introduced the Requirement
The mandatory Tax ID policy is designed to:
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Expand the tax base by ensuring that all taxable individuals and businesses are properly captured in the system.
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Strengthen transparency by linking financial accounts directly to verifiable identities.
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Combat financial crimes, including tax evasion, money laundering, and unregulated business activities.
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Improve public revenue, creating more funds for infrastructure, education, healthcare, and social programmes.
Currently, Nigeria has an estimated 28 million registered bank account holders who fall within taxable categories. By connecting these accounts to Tax IDs, the government hopes to significantly reduce loopholes in tax collection.
5. What Nigerians Should Do to Prepare
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Verify your NIN: Ensure your National Identification Number is active and properly linked to your bank account.
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For business owners: Confirm that your CAC registration number is valid and updated in your company records.
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Existing TIN holders: Keep your TIN safe, as it will continue to serve as your Tax ID.
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Avoid scams: There is no new “Tax ID card” being issued. Your NIN, CAC number, or TIN already qualifies.
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Seek clarification: If unsure of your tax status, consult with the Federal Inland Revenue Service (FIRS) or your financial institution.
