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.