The Federal Government is set to enforce a new phase of its tax reforms, with effect from 1st January 2026 on all bank account holders. Taxable Nigerians will be required to possess a valid Tax Identification Number (TIN) before they can operate their bank accounts. In response to public concerns, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, provided an explanation of the development. He claims that Section 4 of the Nigerian Tax Administration Act (NTAA), which will formally go into force at the beginning of 2026, is directly related to the new requirement.
The concept is not wholly novel, according to Oyedele. He clarified that although the policy was first introduced by the Finance Act of 2020, the NTAA now offers a legally obligatory framework that requires financial institutions to properly implement it. "Yes, but with some exemptions," he said. A taxable individual must register and get a tax ID under a section of the NTAA.
He went on to say that anyone who makes money through trade, employment, commercial ventures, or any other type of economic activity is considered a taxable person. Therefore, before they may operate their accounts, banks will have to ask these people for a tax ID.
Oyedele went on to explain that those without a source of income, particularly dependants and students, won't need to get a tax ID for their bank accounts. He emphasized this again in the interview when he said:
“A taxable person is anyone who earns income through trade, business, or any economic activity. So banks must request a tax ID from taxable persons. This means that individuals who do not earn an income, such as students and dependents, do not need to obtain a tax ID.“Any taxable entity without a tax ID may have difficulty running their bank account in the near future.”
Nigerians are anxious about the revelation, particularly those who don't know if they are taxable or worry that their accounts will be banned once the new regulations take effect.
Additionally, Oyedele noted that individuals and companies who currently own TINs are exempt from obtaining any further tax identification.
Financial analysts claim that the action is a part of a larger government initiative to increase tax revenue, enhance compliance, and lessen systemic leaks. Before the deadline, banks are anticipated to start making internal changes to comply with the NTAA.
Remember that in June 2025, President Bola Ahmed Tinubu signed a set of updated tax laws that would go into effect in January 2026. The administration's strategy to modernise Nigeria's tax system and boost income without raising tax rates included these improvements.
