What Every Nigerian Must Know About Tinubu’s New Tax Law
From January 1, 2026, Nigerians will no longer be able to open or operate a bank account without a Tax Identification Number (Tax ID). This new rule is part of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.
What Does This Mean for You?
Whether you’re a student with a savings account, a trader running daily transactions, or a salary earner waiting for your monthly alert – you must have a Tax ID to keep your account running. No Tax ID, no access to your money.
And it’s not just banks! The law also applies to insurance companies, stockbrokers, and other financial services. Even if you want to do business with the federal or state government, you’ll need your Tax ID handy.
Non-Residents Are Not Left Out
Foreigners who do business in Nigeria or supply goods and services here are also required to register, pay taxes, and obtain a Tax ID. This levels the playing field so that everyone – local or foreign – contributes to the nation’s growth.
What If You Stop Doing Business?
The law also gives room for flexibility. If you temporarily stop trading or permanently shut down your business, you can apply to suspend or deregister your Tax ID.
Why This Matters to Nigerians
- For the Average Nigerian: It means more accountability. Everyone in the financial system must be traceable, reducing fraud and illegal money flows.
- For Businesses: It strengthens compliance and ensures both small and big companies contribute fairly to the tax system.
- For the Country: More people in the tax net = more government revenue. This could mean better infrastructure, improved public services, and less reliance on borrowing.
The Bigger Picture
This move is part of the government’s strategy to expand Nigeria’s tax net and boost revenue collection. Analysts say it could transform the financial system by making sure more Nigerians pay their fair share of tax.
What’s Next?
Banks and other financial institutions are expected to begin adjusting their systems now to ensure customers can only be served with valid Tax IDs by 2026.
So, Nigerians, the message is clear:
Get your Tax ID before 2026 – or risk being locked out of the financial system!
