FG makes tax identification mandatory for banking, allied services
FG makes tax identification mandatory for banking, allied services
The Federal Government has mandated that individuals engaging in banking and similar services must have a Tax Identification Number (Tax ID) in the country.
As a result, all individuals required to pay taxes in Nigeria must secure a Taxpayer Identification under the new tax regulations, effective January 2026.
This Tax ID requirement is outlined in the Nigeria Tax Administration Act, 2025, specifically in Part II Section 4 of the law recently approved by President Bola Tinubu.
It states, “Every taxable individual must register with the appropriate Tax Authority and obtain a Taxpayer Identification Card (Tax ID) to meet tax obligations.”
Additionally, it stipulates that “Every ministry, department, or agency at the federal, state, or local level must register and acquire a Tax ID.”
Section 6 (1) of the Act also mandates that non-resident individuals providing taxable goods and services to anyone in Nigeria must obtain a Tax ID, as they will be liable for tax in Nigeria.
Furthermore, Section 7 (3) allows the relevant tax authority to grant a Tax ID to someone who was expected to apply but did not. The authority can also refuse to issue a Tax ID based on the information it possesses; in this instance, the applicant must be notified of this decision within five working days.
According to Section 8 (1)(c), having a Tax ID is necessary for entering contracts with both the Federal and State governments.
Moreover, Section 8 (2) requires that anyone wishing to open a bank account or engage in insurance, stock trading, or related services must obtain a Tax ID once the Act goes into effect on January 1, 2026.
The Act also includes a provision allowing for the suspension or cancellation of a Tax ID if the holder stops conducting business, whether temporarily or permanently.
