Tax Identification Cards and eventually Numbers (Tax ID) will become compulsory for all Nigerians involved in banking and allied services throughout the country as from January 1, 2026.
This is because the new Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu has provisions to that effect, prompting not only a few to observe that many Nigerians would be thrown into another round of confusions in the hands of overzealous government and bank officials in the coming year.
Under Part II, Section 4 of the Act, all taxable individuals and organizations must register with the relevant tax authority and obtain a Taxpayer Identification Card to enable them carry banking transactions in the country.
The Act further stipulates that every ministry, department, and agency at federal, state, or local levels must also secure a Tax ID. Non-resident individuals or entities supplying taxable goods or services in Nigeria are equally mandated to obtain one.
The law also empowers tax authorities in the country to issue a Tax ID on behalf of those who fail to apply, or to reject applications if available information warrants such action. However, applicants must be notified of any refusal within five working days.
In addition, Section 8 of the Act makes possession of a Tax ID a prerequisite for government contracts, banking transactions, insurance, stock market participation, and other financial services.
Nevertheless, the law further allows for temporary suspension or permanent deregistration of Tax IDs if holders cease business operations.
Meanwhile, the Nigeria Revenue Service Establishment Act, 2025, vests enormous powers in the Service’s Executive Chairman, who will also chair its Governing Board.
The board, according to the law will include representatives from the Ministries of Finance, National Planning, Justice, Petroleum, the Central Bank, Customs, the Corporate Affairs Commission and other key institutions.
