In a significant move aimed at strengthening tax compliance, the Federal Government of Nigeria has announced that Tax Identification Numbers (TINs) will become mandatory for all individuals and entities to operate bank accounts, starting January 1, 2026. The announcement was made by Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in an interview shared on his X account (formerly Twitter) on Thursday.

Details of the New Policy

The new policy, which builds on the provisions of the Nigerian Tax Administration Act (NTAA), is intended to improve tax compliance and streamline the country’s tax system. The requirement applies only to taxable individuals and entities—those who earn income through trade, business, or other economic activities. Students and dependents who do not earn an income will be exempt from the requirement, Oyedele clarified.

This measure follows a similar framework established under the 2020 Finance Act but is now supported by the NTAA, which formally enforces the policy starting next month. Those who already possess a TIN will not be required to obtain a new one.

Implications for Bank Account Holders

Oyedele also emphasized that individuals and entities without a TIN could face restrictions on their bank accounts starting in 2026. This would include difficulties in accessing certain banking services, which could significantly affect people and businesses that do not comply with the new regulation.

The requirement for a TIN to open or operate a bank account is aimed at improving tax collection by ensuring that all income earners are properly registered with the Federal Inland Revenue Service (FIRS), making it easier for the government to track and collect taxes.

Background and Legal Basis

The policy is grounded in Section 4 of the Nigerian Tax Administration Act, which takes effect in January 2026. While the requirement for a TIN has existed since the 2020 Finance Act, the NTAA now provides formal legal backing to enforce the policy more effectively.

The new tax reforms, which were signed into law by President Bola Tinubu in June 2025, aim to overhaul the tax system in Nigeria, with the goal of simplifying the tax collection process, reducing the tax burden on low-income earners, and boosting government revenue. The government is hopeful that these reforms will improve economic growth and public service delivery in the long run.

The 2025 Tax Reforms

President Tinubu’s signing of four finance bills into law marked a significant step in the country’s efforts to restructure its tax system. The new tax laws are designed to:

• Simplify revenue collection and make the process more efficient
• Reduce the tax burden on lower-income individuals and businesses
• Increase government revenue through more comprehensive and efficient tax compliance mechanisms

These reforms are expected to help expand disposable income for Nigerian workers and protect low-income households from an overwhelming tax burden.

Public Concerns and Reactions

While the move to make TINs mandatory for bank accounts is part of a broader effort to modernize Nigeria’s tax system, it has sparked concerns among some Nigerians. Many are worried about the accessibility and efficiency of obtaining a TIN, especially for those in remote areas or those who face challenges navigating bureaucratic processes.

The government, however, has assured that the system will be user-friendly and that adequate steps will be taken to ensure that the process is as seamless as possible for individuals and businesses to comply with the new requirements. The National Taxpayers’ Database (NTD) will play a critical role in helping individuals obtain their TIN through various registration channels, including online portals and physical registration points.