FG Sets New Rule for Nigerians, Non-Residents to Access Bank Accounts

Starting January 1, 2026, no Nigerian citizen or foreign resident will be able to open or maintain a bank account without first obtaining a Tax Identification Number (Tax ID).

This requirement is part of the Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu on June 26, 2025. Beyond banking, the law makes the Tax ID mandatory for insurance services, stock exchange activities, and contracts involving federal or state governments.

Under the Act, all taxable individuals must register with the appropriate authority to be issued a Tax ID card. The rule also extends to ministries, departments, and agencies across all tiers of government.

Foreign companies and individuals providing taxable goods or services in Nigeria will likewise be compelled to register and pay tax locally. Tax authorities are empowered to assign Tax IDs to defaulters or reject applications where necessary, with decisions to be communicated within five working days.

In addition, businesses that suspend or shut down their operations must inform the tax authority within 30 days, after which their Tax ID will either be deactivated or deregistered.

The legislation also creates the Nigeria Revenue Service, headed by an Executive Chairman who will lead the Governing Board for a renewable four-year tenure. To sustain its operations, the Service will receive four percent of all revenues it generates, excluding petroleum royalties.