 |
| Tax ID required for all Nigerian bank accounts |
Nigeria will require all citizens and non-residents to provide a Tax Identification Number (TIN) to open or operate bank accounts starting January 1, 2026. The rule is part of the Nigeria Tax Administration Act 2025, signed into law by President Bola Tinubu on June 26, 2025. The law aims to broaden tax compliance and modernize revenue collection .
The TIN requirement will also apply to insurance services, stock market transactions, and contracts with federal or state governments. All taxable individuals, businesses, and government agencies must register for a TIN. Non-residents supplying taxable goods or services in Nigeria must also comply .
Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS), announced the policy on September 11, 2025. He called the TIN mandate a “cornerstone” of efforts to enhance tax compliance and transparency. The NRS replaces the former Federal Inland Revenue Service (FIRS) under the new law .
Tax authorities can automatically issue TINs to those who fail to register or deny applications with justification within five working days. Businesses that suspend or close operations must inform tax authorities within 30 days. Their TINs will then be marked dormant or deregistered .
The government exempts low-income earners and over 90% of micro, small, and nano businesses from certain taxes. Essential goods like food, healthcare, and transportation remain free from value-added tax (VAT) .
Nigeria’s tax-to-GDP ratio is currently 10%, below Ghana (13%), Kenya (16%), and South Africa (27%). Only 10 million of Nigeria’s 200 million citizens are registered taxpayers, despite over 60 million holding bank accounts. The government hopes the TIN mandate will close this gap .
Public reaction is mixed. Tax experts praise the move for accountability, while small business owners fear bureaucratic delays. A Lagos-based consultant called it “long overdue,” but a civil servant in Abuja warned of potential corruption in the registration process .
The government has set a six-month preparatory period for registration. The NRS will launch awareness campaigns and system upgrades to ease the rollout. Citizens are urged to register early to avoid disruptions .
Steps to Register for TIN:
1. Visit an NRS office or designated center.
2. Provide required documents: NIN, BVN, valid ID, and proof of address.
3. Business owners must submit registration documents.
4. Receive TIN after processing .
Failure to comply will result in loss of access to banking, insurance, and government contracts. The government emphasizes that the rule targets tax evasion and informality .