Pat Stevens/
Nigeria’s sweeping tax reforms will soon touch the lives of millions, as the government makes possession of a Tax Identification Number (TIN), now called a Tax ID, compulsory for opening or operating a bank account and conducting key transactions.
The requirement, which takes effect on January 1, 2026, is part of the Nigeria Tax Administration Act (NTAA) 2025, one of four new laws signed in June as the most ambitious tax overhaul in decades.
Spearheaded by the Presidential Fiscal Policy and Tax Reforms Committee chaired by Taiwo Oyedele, the reforms are meant to simplify compliance, reduce duplication, and widen the tax base by capturing more activity in Nigeria’s vast informal economy.
From 2026, banks and financial institutions will insist on a valid Tax ID for both new and existing customers.
Nigerians who already have a TIN do not need to register afresh, as the new system harmonises old numbers.
Nigerians abroad, foreigners earning income locally, and companies operating in the country are all covered.
Authorities promise the registration process will be digital to avoid queues and red tape.
Beyond the Tax ID, the new laws consolidate multiple tax statutes, expand the definition of taxable persons, introduce new levies such as a development levy on companies, and impose stricter filing requirements on businesses.
Tax analysts at EY, PwC and KPMG say the reforms also pave the way for more digitalisation in record-keeping and compliance.
For ordinary Nigerians, this means that traders, artisans, salary earners and small businesses will now be more visible to tax authorities.
The government insists simplified processes will make compliance easier, but critics worry about accessibility for rural dwellers and whether tax offices can handle the expected surge in registrations.
Nigeria has long struggled with weak tax collection compared to its population and GDP, relying heavily on oil revenues.
With crude earnings shrinking, the government is betting on these reforms to fund infrastructure, health and education.
The big question remains whether implementation will deliver a fairer, transparent system or simply create new burdens for citizens.
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