New Tax Law: Can Nigerians Operate Bank Account Without Tax Identification Number?
In September 2025, a claim circulated online and in media reports stating that beginning January 1, 2026, no Nigerian or non-resident will be allowed to open or operate a bank account without a valid Tax Identification Number, TIN. As the year winds up, this claim has ignited widespread concern among citizens, businesses and non-residents doing businesses in Nigeria.
Where Did This Claim Come From?
The claim is linked to a new tax law, the Nigeria Tax Administration Act, NTAA, 2025, which is expected to take effect from January 1, 2026. This law introduces significant reforms to how tax identification works and how financial institutions verify customers.
Under the NTAA and related regulations:
- A Tax Identification Number (TIN) becomes an important legal identifier for tax administration.
- Banks and other financial institutions are expected to collect Tax IDs as part of customer verification.
What Does The Law Actually Say?
The relevant provisions in the NTAA and regulatory framework require financial institutions to ensure that taxable customers provide their Tax ID as part of customer onboarding and compliance processes.
Key points about the NTAA and related regulations states that:
- The law intends to link all financial and taxable activities to a Tax ID to strengthen tax administration.
- Section 8 of the NTAA specifically mandates that financial institutions obtain a valid Tax ID from persons engaged in banking, insurance, stockbroking, and related financial services.
- Non-resident individuals and companies that derive income or conduct taxable activities in Nigeria are also required to register for a Tax ID.
Important Clarifications And Exemptions
While the headline version, “no bank account without a Tax ID”, sounds absolute, here are some official clarifications from government and tax authorities on the policy.
Only taxable persons require Tax ID
According to the Federal Government and tax officials, the mandatory Tax ID requirement primarily applies to taxable individuals and entities, that is, people or businesses earning income from trade or economic activities. Persons not engaged in taxable activities (e.g., students or dependents with no income) are not automatically required to have a Tax ID just to open or operate a bank account.
You may not need a separate Tax ID
For many Nigerians, your National Identification Number, NIN, now automatically serves as your Tax ID under the new framework. Likewise, companies use their Corporate Affairs Commission, CAC registration number as their Tax ID.
Existing accounts will likely not be blocked immediately
The Joint Tax Board and officials of the Federal Inland Revenue Service, FIRS, have stated that people will continue to use their existing bank accounts even if they do not yet have a separate Tax ID; though financial institutions will encourage or require linking an ID over time.
Bottom Line
The new tax laws will require taxable persons and entities to provide a valid Tax ID to open or operate bank accounts and access financial services. For many Nigerians, their NIN already functions as their Tax ID, so no extra number may be needed.
Ordinary individuals who do not earn taxable income may not be forced to obtain/present a separate TIN just to keep using their bank account. Tax authorities and the Joint Tax Board have reassured the public that bank access will not be abruptly cut off for those without a Tax ID, although banks will push for compliance.
