What to Know About Tax ID Requirement to Operate Bank Account

The new tax laws expected to take effect from January 1, 2026, have left many Nigerians apprehensive about certain provisions.

One of the provisions is the requirement of a tax identification number (TIN), tax identity (Tax ID) and National Identification Number (NIN) before anyone can continue to operate or open a bank account in Nigeria.

In an effort to clarify these worries, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, responded to a list of growing concerns on the tax laws.

He said the Nigeria Tax Administration Act (NTAA) mandates the use of a tax ID for certain transactions while explaining how it will affect banking, businesses, and everyday life.

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According to the tax committee chairman, everyone must obtain a Tax ID before opening or continuing to operate a bank account, but with some clarifications that Section 4 of the NTAA requires all taxable persons to register with the tax authority and obtain a Tax ID.

He described a “taxable person” as someone who carries on trade, business, or other economic activity to earn income.

He said banks and other financial institutions are required to request a tax ID from taxable persons, explaining that individuals who do not earn income and are not taxable persons are not required to obtain a tax ID.

The tax committee chairman noted that the requirement is not a new policy, as it has been in place since the Finance Act of 2019, which amended section 49 of the Personal Income Tax Act.

He further noted that since January 2020, individuals opening a business account have been required to provide a Tax Identification Number (TIN), stressing that the NTAA only strengthens and harmonises this requirement.

Tax ID and how it applies to the tax law

Explaining the tax ID, he said it is a term that unifies the different TINs issued by the Federal Inland Revenue Service (FIRS), Joint Tax Board (JTB), and State IRS (Internal Revenue Service).

“Ultimately, your NIN (for individuals) and CAC RC number (for companies) will serve as your Tax ID, reducing duplication and simplifying compliance,” he clarified.

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He explained that when one already has a TIN, the person does not need a new tax ID.

He added, “Your existing TIN remains valid. If you already have one, you do not need to register again. For those without a TIN, you will need your NIN (individuals) or CAC registration documents (companies) to process your Tax ID.”

The Tax ID is simply a unique number linked to your identity, not necessarily a physical card, Oyedele said.

“To obtain it, you can visit the nearest FIRS, State IRS, or JTB office, or apply online via their official websites. It is free of charge. Please do not patronise touts or unofficial agents.”

He said the requirement of the tax ID also applies to businesses, adding that for unregistered businesses, a personal TIN/tax ID is sufficient.

“For companies, NGOs, incorporated trustees, and other registered entities, a TIN will be automatically generated with your CAC registration details,” he explained.

He stated that if one’s business was registered without a TIN in the past, the person can simply visit the FIRS or apply online with his or her CAC documents to get one.

How it affects Nigerians in the diaspora 

Nigerians abroad can obtain a tax ID using their NIN for banking or investment purposes in Nigeria, Oyedele said. A simplified process has been introduced for diaspora Nigerians, and the details are on the NIMC website.

He also clarified that foreign companies and non-resident entities need a tax ID if they do business in Nigeria.

A non-resident company supplying goods or services to Nigerian customers must register for a tax ID; however, he said those earning only passive income (dividends, interest, royalties, or rent) may not need to register, though they must provide relevant information.

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“A company registered abroad but effectively managed or controlled in Nigeria is treated as a resident and must comply,” Oyedele stated.

MDAs, government agencies not exempt

Citing Section 5 of the NTAA, Oyedele said the Act requires all ministries, departments, agencies (MDAs), and government-owned enterprises (federal, state, or local) to register for tax and obtain a Tax ID.

Penalty for non-compliance 

From January 1, 2026, when the tax law takes effect, Oyedele warned that taxable persons who fail to register or do not have a tax ID may not be able to operate bank accounts, insurance policies, pension accounts, or investment accounts.

He said sanctions also apply under the NTAA, stressing, however, that individuals who are not taxable persons are not required to obtain a Tax ID.

Benefits to Nigerians

The tax committee chairman hinted that the aim is to simplify identification, reduce duplication, and close loopholes that allow tax evasion.

“For most individuals and businesses, their NIN or CAC RC number will serve as their tax ID with no extra paperwork.

“This ensures fairness so that everyone who earns taxable income contributes their share while protecting low-income citizens who are not taxable,” Oyedele added.

Pinnacle Daily reports that President Bola Tinubu signed and assented to the acts on June 26, and the new tax reform laws were officially published in the government gazette on September 10.