As of September 5, 2025, the Federal Government has officially made it mandatory for all taxable individuals to obtain a Taxpayer Identification Number (Tax ID/TIN) if they wish to participate in banking and other allied services. This requirement will come into force on January 1, 2026, under the Nigeria Tax Administration Act, 2025.
Details of the New Law:
Who’s affected:
All taxable Nigerians.
Ministries, departments, agencies at federal, state, or local levels.
Non-residents supplying taxable goods/services to Nigeria or earning income from Nigeria.
What’s required:
A Tax ID must be obtained to open or operate bank accounts, insurance, stock trading, and any future allied financial services.
For government contracts:
A valid Tax ID is now required to enter into contracts with federal or state governments.
Automatic issuance & enforcement:
Tax authorities can issue a Tax ID to anyone who fails to apply, and may refuse one based on available information—with notification to the applicant within five working days.
Dormancy and deregistration:
If you temporarily cease business, you must notify authorities within 30 days to have your Tax ID marked as “dormant.”
Permanent cessation requires deregistration within the same timeframe.
Oversight:
The Nigeria Revenue Service’s board, led by an Executive Chairman with sweeping powers, will oversee implementation. Funding for the NRS will come from a 4% deduction on revenues collected (excluding petroleum royalties).
Why It Matters
Broader tax compliance: This is part of a sweeping tax reform meant to expand the tax base and improve revenue collection efficiency.
Financial access: Starting January 2026, access to banking, insurance, and stock services hinges on having a Tax ID.
Accountability & transparency: The law tightens enforcement mechanisms with provisions like auto-issuance and penalties for non-compliance (where applicable).
Government contracts: Entities without a valid Tax ID will be unable to engage in contracts with government bodies.
If you'd like more clarity on how to register for a Tax ID, what steps to take before January 2026, or details about enforcement and penalties, feel free to ask!
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