By Jemimah Wellington, JKNewsMedia Correspondent
MANDATORY TAX identification will become a condition for operating bank accounts in Nigeria from January 1, 2026, following a federal government directive tied to new tax administration laws.
The requirement applies to every taxable Nigerian and forms part of a broader effort to strengthen tax administration and compliance.
The clarification was given by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, during an interview shared on his X account on Thursday.
He said the policy requires all taxable persons to possess a Tax Identification Number (NTAC) or Taxpayer Identification Number (TIN) that will be linked to their financial activities, including bank accounts.
Oyedele said the requirement is anchored in Section 4 of the NTAC, which comes fully into force in 2026.
He explained that the law makes it compulsory for taxable persons to register and obtain a tax identification number, adding that financial institutions will rely on this identification in the course of banking operations.
He said the policy is part of the government’s plan to improve tax administration, close revenue gaps, and ensure that people who earn income contribute to national development.
He added that the measure is not entirely new, noting that a similar directive existed under the Finance Act of 2020.
However, he said the NTAC now provides a stronger legal framework to enforce the requirement nationwide.
Oyedele explained that under the new framework, banks will be legally required to request tax identification numbers from customers who fall within the category of taxable persons.
He also said this obligation applies only to those who earn income and are recognised as taxpayers under Nigerian law.
In defining who qualifies as a taxable person, Oyedele said the term refers to anyone who earns income through trade, business, employment, or any form of economic activity.
He listed salary earners, self-employed persons, small businesses, traders, artisans, contractors, corporate organisations, and other income generating groups as falling within this category.
“If you earn an income, whether as an individual or as a business, you are a taxable person,” he said. He added that individuals who do not earn income do not fall under this requirement.
He specifically mentioned students and dependents as examples of people who do not need to obtain a tax identification number.
Oyedele also addressed concerns about multiple registrations adding that individuals and businesses that already possess a TIN do not need to register for a new one.
According to him, existing tax identification numbers will remain valid and will continue to be used under the new system.
He stressed that the government has no intention of placing unnecessary burdens on people who do not earn a living adding that children, students, and dependents who rely on others for financial support will not be required to obtain a TIN in order to maintain or operate a bank account.
He noted that the policy targets only those who earn income and qualify as taxpayers and added that owning a bank account alone does not make a person a taxpayer and that income generation remains the determining factor.
While speaking on enforcement, Oyedele said the government has not announced a specific deadline within 2026 for implementation.
However, he warned that taxable Nigerians who fail to obtain a tax identification number may face difficulties operating their bank accounts once the requirement takes effect.
He explained that when banks are required to verify the tax status of customers, accounts without valid tax identification numbers may be flagged for compliance checks.
He also did not state that accounts would be closed but said the requirement would be enforced in line with the law.
Oyedele said the government is committed to ensuring that the process of compliance is simple, transparent, and fair. He added that taxpayers will be given adequate time and support to meet the requirement.
The announcement follows the signing of several new tax laws by President Bola Ahmed Tinubu in June 2025, adding Oyedele said the laws will take effect on January 1, 2026, and form part of the administration’s tax reform agenda.
He said the reforms are designed to improve revenue generation while avoiding additional burdens on poor Nigerians. He added that the aim is to ensure that people who already earn income pay the taxes they are legally required to pay.
Oyedele also said the NTAC framework is expected to simplify tax procedures. He stated that the law will reduce the number of small taxes paid by Nigerians and make it easier for businesses to comply with tax obligations.
He added that the framework is designed to harmonise tax collection and reduce duplication.
He reiterated that the policy linking TINs to bank accounts is focused on taxable persons and income earners and noted the requirement will apply strictly within the provisions of the law and will not extend to individuals who do not earn income.
