The directive is part of the newly signed Nigeria Tax Administration Act, 2025, which makes Tax ID compulsory for accessing financial services, including banking, insurance, and stock-broking.
According to the law, all taxable persons — individuals, companies, and even non-residents who earn income or conduct business in Nigeria — must register for a Tax ID. Government agencies and ministries are also covered, as no entity will be permitted to enter into contracts with federal or state governments without a valid Tax ID.
Banks and financial institutions have been mandated to verify Tax IDs before opening or maintaining customer accounts. Under Section 7(3) of the Act, the tax authority also has the power to assign a Tax ID to anyone who fails to register, while suspended or deregistered IDs may apply to businesses that cease operations.
The Federal Government explained that the move is aimed at improving revenue collection, curbing tax evasion, and ensuring wider compliance.
Meanwhile, experts have clarified that the requirement applies only to taxable persons. Those without taxable income may not need to register. Authorities are also considering harmonizing identifiers such as the National Identification Number (NIN) and the Corporate Affairs Commission (CAC) registration number to function as Tax IDs, in order to ease compliance.
Leave a comment
Your email address will not be published. Required fields are marked *
