New Tax Law: Banks to Enforce TIN Requirement From 2026

Starting January 1, 2026, banks in Nigeria will require a Tax Identification Number (TIN) from all taxable individuals. This move, announced by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, aligns with the federal government’s updated tax administration framework. Oyedele revealed this during an interview shared on his official X account, marking a significant step towards improved tax compliance.

Understanding the TIN Mandate

The Nigeria Tax Administration Act (NTAA) mandates that all taxable individuals must secure a TIN to maintain their bank accounts. However, students and dependents are exempt from this requirement. Oyedele elaborated that this policy had been anticipated since the 2020 Finance Act but now finds its legislative backing with the NTAA.

Impact on Income Earners and Businesses

For those concerned about compliance, Oyedele confirmed that income earners and businesses already possessing TINs need not obtain new tax IDs. This simplifies the process for existing compliant entities, aiming to streamline and reinforce tax policies across the board.

Addressing Concerns and Misconceptions

Despite rising opposition, notably within the capital market regarding the recently reviewed Capital Gains Tax (CGT), Oyedele reassured stakeholders that these reforms aim to enhance rather than hinder market activity. As stated, the new tax framework is designed to be equitable and investor-friendly, promoting market confidence and stability.

Progressive Changes in Tax Rates

The revamped CGT will transition from a flat rate to a progressive system, ranging from 0 to 30 percent based on income levels. This reflects ongoing efforts to harmonize taxation with income, ensuring fairness and compliance.

Navigating Public Concerns

The Minister of Finance, Mr. Wale Edun, echoed these sentiments, expressing the Federal Government’s willingness to consider public feedback for future policy adjustments. He underlined the government’s commitment to a balanced approach that supports investment while maintaining fiscal responsibility.

Looking Ahead

These measures underscore Nigeria’s strategic intent to refine its fiscal landscape, encouraging transparency, fairness, and growth. As The Guardian Nigeria News highlights, the tax reforms are poised to bolster Nigeria’s economic standing while safeguarding investor interests.

The upcoming changes may necessitate a period of adjustment, but they promise long-term benefits by creating a robust, compliant market environment that attracts both national and international investors.