FG Makes Tax ID Mandatory for Bank Accounts, Contracts, and Financial Transactions from 2026

In a sweeping move set to redefine Nigeria’s financial landscape, the Federal Government has announced that beginning January 1, 2026, possession of a Tax Identification (Tax ID) will become a prerequisite for opening bank accounts, securing government contracts, and engaging in virtually all financial transactions across the country.

The directive, contained in the newly signed Nigeria Tax Administration Act, 2025, by President Bola Ahmed Tinubu, marks a decisive step in tightening tax compliance and widening the nation’s revenue net.

According to Part II, Section 4 of the Act, all taxable individuals, businesses, and organizations must register with the relevant tax authority to obtain a Taxpayer Identification Card. This requirement also extends to all ministries, departments, and agencies (MDAs) at federal, state, and local levels, as well as non-resident individuals or foreign entities supplying taxable goods or services in Nigeria.

The Act empowers tax authorities to either issue a Tax ID on behalf of those who default or reject applications if discrepancies are discovered—though such refusals must be communicated within five working days.

Furthermore, Section 8 of the law spells out an expansive list of activities that will now require a valid Tax ID. These include:

Opening or operating bank accounts,

Applying for government contracts,

Accessing insurance services,

Participating in the stock market,

And conducting other financial and commercial transactions.


The legislation also grants tax authorities powers to temporarily suspend or permanently deregister Tax IDs if holders cease operations or are found non-compliant.

Meanwhile, the Nigeria Revenue Service Establishment Act, 2025, which complements the Tax Administration Act, hands sweeping authority to the Executive Chairman of the Service, who will also preside over its Governing Board. The board will feature representatives from strategic institutions, including the Ministries of Finance, National Planning, Justice, and Petroleum, alongside the Central Bank of Nigeria, Customs, and the Corporate Affairs Commission (CAC).

With this reform, financial experts say Nigeria is entering a new era where banking, business, and taxation will be inseparably linked, a move expected to strengthen transparency but likely to stir debate among citizens and corporate entities grappling with the nation’s biting economic realities.