₦airaland Forum

FG makes tax identification mandatory for banking, allied services


The Federal Government has made Tax Identification, (Tax ID) compulsory for people getting involved in banking and allied services in the country.

Consequently, all taxable Nigerians are to obtain a Taxpayer Identification when the new tax Acts come into force in January 2026.

The Tax ID is contained in the provisions of the Nigeria Tax Administration Act, 2025, Part II Section 4 of the legislation which was recently signed by President Bola Tinubu.

It says, “Every Taxable person shall register with the relevant Tax Authority and obtain a Taxpayer Identification Card (Tax ID) for the purpose of compliance with tax obligations.”

“Every ministry, department or agency of the federal, State or Local government shall register and obtain a Tax ID.”

Section 6 (1) of the Act also requires Non-resident persons who supply taxable goods and services to any person in Nigeria to obtain Tax ID, as they shall be obligated to pay tax in Nigeria.

Section 7 (3) empowers the relevant tax authority to issue Tax ID to a person who should have applied for an ID but failed to do so. The relevant tax authority is also empowered to refuse to issue a Tax ID to an applicant based on information available to it. In such a case, the authority shall inform the applicant of its decision within five working days.

Section 8 (1) (c) makes Tax ID a condition for entering into any contract with the Federal and State governments.

Section 8 (2) makes Tax ID mandatory for any person to operate a bank account or get involved in insurance, stocks or allied services in the country, once the Act comes into force from January 1, 2026.

The Act, however, provides an allowance to suspend or deregister the Tax ID, if the holder ceases to undertake trade or business, either temporarily or permanently.

Sector 10 (1) provides, “Where a taxable person temporarily ceases to carry on a trade or business in Nigeria, the taxable person shall notify the relevant tax authority of its intention to suspend its registration for tax purposes within 30 days of such temporary cessation of trade or business.

(2) “The Tax authority shall classify the Tax ID as ‘dormant’ and place it on suspension.

(3) “Where a taxable person permanently ceases to carry on trade or business in Nigeria, the taxable person shall notify the relevant tax authority of its intention to deregister for tax purposes within 30 days of such cessation of trade or business.”

Revenue Service Chairman’s enormous powers.

The Act for the Establishment of the Nigeria Revenue Service, 2025, makes the Executive Chairman its Governing Board Chairman, leaving the occupant with enormous powers.

The Board shall consist of Ex-Officio members, including a representative of the Minister of finance, not lower than the rank of a Director, a representative of the Minister of National Planning; Attorney-General of the Federation; Minister of Petroleum; Central Bank of Nigeria Governor, (not less than a Deputy Governor); the Revenue Mobilisation Allocation and Fiscal Commission; the Comptroller-General of Customs or his representative who shall not be below Deputy Comptroller-General; the Registrar-General of the Corporate Affairs Commission; as well as Executive Directors of the Revenue Service to be appointed by the President.

The Chairman of the Service shall have a four-year term of office, which could be renewed for another four – year term.

Section 22 (a) of the Act provides that the Service shall be funded through 4 percent deduction of revenues it shall collect, except Petroleum Royalties.

helinues:
Let them start with business people and entrepreneurs first. I actually thought about it yesterday, something like EIN for business in USA.

That would boost online sales as most sellers would need to registered which their EIN which much tally with their names on record

helinues:
Let them start with business people and entrepreneurs first. I actually thought about it yesterday, something like EIN for business in USA.

That would boost online sales as most sellers would need to registered which their EIN which much tally with their names on record

Hamachi:
While the government’s intention to strengthen tax compliance is understandable, making a Tax Identification Number (Tax ID) compulsory for basic financial services such as banking, insurance, and stock investments could end up punishing ordinary Nigerians more than it benefits the economy.

Millions of Nigerians are still outside the tax net, and many operate in the informal sector where income is unstable and poorly documented. Forcing them to obtain a Tax ID before they can open a bank account or access financial services could push people further away from the formal economy, defeating the very goal of broadening the tax base.

Instead of compulsion, government should first build trust and simplicity in the tax system. Nigerians already feel burdened by multiple taxes and levies, often without seeing the benefits in infrastructure, healthcare, or security. Until accountability and service delivery improve, making Tax IDs mandatory for financial inclusion may look less like reform and more like another barrier.

True progress will come from policies that encourage voluntary compliance, supported by technology, awareness, and incentives — not by shutting the door of the banking hall against those who are already struggling to survive.

helinues:
Let them start with business people and entrepreneurs first. I actually thought about it yesterday, something like EIN for business in USA.

That would boost online sales as most sellers would need to registered which their EIN which much tally with their names on record

Pythagoras001:
This is the proper thing to do. this is one stratergy of combatting money laundring their are still other things that needs to be done. just like everything with the country enforcement is the issue

Dogalmighty17:
Housing - zero
health care - zero
Education - zero
Security - zero
Credit facilities - zero
Pipe borne water - zero

Government collects taxes and provides non of these. I provide all these myself. The taxes I pay has no benefit to me. Do you know what the taxes you and I pay are used for?

Your tax pays for the highest paid senators and house of assembly members on earth.

Your tax money pays for the over 7 trillion naira of budget padding that senators and house of rep members have added to the budget and signed by the president this year.

Your tax pays for the 1 billion Naira monthly that every senator collects from the president. Your tax will pay for the new salary increase that the Revenue and Fiscal Allocation and Mobilization Committee (RFAMC) says every political office holder deserves.

Your tax money pays for the 90 billion Naira Yahaya Bello stole from Kogi state and is walking freely around the president. Your tax money pays for the over 400 million dollars 34 state governors spent last year junketing around the globe looking for foreign investors and got zero returns as investment.

Your tax money pays for the over 55 billion naira budgeted each year for the Aso Rock clinic that doesn't even have paracetamol available. Your tax money pays for the 3.5 billion naira budgeted for cutlery in Aso Rock each year.

Your tax money paid for the 400 million naira wristwatch the presidents son wears around. Your tax paid for the 195 million naira Patek Phillipe wristwatch Sanwo Olu wore to Davido's wedding.

Your tax money pays the salary of the police and the soldiers who call you a bloody civilian and beat you up at the slightest provocation. Police and soldiers who run away from bandits when they come to attack you.

Your tax money does all these and does nothing for you in return. Yet these same locusts, led by their principal in Aso Rock, want more from you.

helinues:
Let them start with business people and entrepreneurs first. I actually thought about it yesterday, something like EIN for business in USA.

That would boost online sales as most sellers would need to registered which their EIN which much tally with their names on record

helinues:
Let them start with business people and entrepreneurs first. I actually thought about it yesterday, something like EIN for business in USA.

That would boost online sales as most sellers would need to registered which their EIN which much tally with their names on record

yang:
a very bad idea

this govt provides no services to people and is taxing the hell out of people while monopolizing all revenues (only to polithiefcians, APC members, Fed State and Local Govt civil servants)

the rest of the population gets no direct payments from this evil govt

it is evil

This man is a big thief, we warned you all, he is very pgreedy and will not stop until all people leave the banking system and start moving cash

put your money in crypto and stay away from this evil govt

helinues:
Let them start with business people and entrepreneurs first. I actually thought about it yesterday, something like EIN for business in USA.

That would boost online sales as most sellers would need to registered which their EIN which much tally with their names on record