From January 1, 2026, Nigerians will no longer be able to open or run bank accounts without a Tax Identification Number (Tax ID). The Federal Government made this announcement following the signing of the new Nigeria Tax Administration Act, 2025, which ties tax registration directly to access to financial services.

According to the law, every individual, business, and even government body at all levels must register with the tax authorities and obtain a Tax ID. The rule also extends to foreign companies that supply taxable goods or services in Nigeria, meaning they too must comply.

One of the key provisions of the Act is that banks, insurance firms, and stockbroking companies will only offer their services to customers who have a valid Tax ID. Without it, you won’t be able to open an account, apply for insurance, or trade in shares.

Tax authorities have also been given more powers under this law. They can issue Tax IDs to people or businesses who fail to register on time, and they can deny an application if the requirements are not met. In such cases, they are expected to notify applicants within five working days.

The Act also makes room for flexibility. If someone pauses their business, they can apply to have their Tax ID marked as dormant. For those shutting down permanently, deregistration is possible, and their Tax ID will be cancelled. This move is meant to tighten Nigeria’s tax system, broaden the tax net, and increase government revenue. It also creates a direct link between taxation and the financial sector.