No Escape: FG Declares All Nigerians Must Get Tax ID By January 2026

The Federal Government has announced that from January 1, 2026, all taxable Nigerians must obtain a Taxpayer Identification Number (Tax ID). The requirement also applies to individuals and entities engaging in banking, insurance, stock trading, and other financial services.

This directive is contained in the newly enacted Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu. The law is designed to modernize tax administration, broaden the tax net, and boost government revenue.

According to Part II, Section 4, “Every taxable person shall register with the relevant tax authority and obtain a Taxpayer Identification Card (Tax ID) for compliance with tax obligations.” This also covers ministries, departments, and agencies across federal, state, and local governments.

Furthermore, non-resident individuals or companies supplying taxable goods or services in Nigeria are required to register for a Tax ID under Section 6 (1), making them subject to Nigerian tax laws.

The Act empowers tax authorities to assign a Tax ID even if an individual or entity fails to apply voluntarily. However, any refusal to issue one must be communicated within five working days.

Crucially, the Tax ID will become a mandatory requirement for government contracts, bank account operations, and participation in financial services once the law comes into force.

For businesses that suspend or permanently shut down operations, the Act provides for a “dormant” classification of the Tax ID or full deregistration if notified within 30 days.

The law also establishes the Nigeria Revenue Service (NRS) as the central tax authority, headed by an Executive Chairman who doubles as the leader of the Governing Board and will serve a four-year renewable term.

The Governing Board will include representatives from the Ministry of Finance, Ministry of National Planning, the Attorney-General’s Office, the Central Bank of Nigeria, the Revenue Mobilisation Allocation and Fiscal Commission, the Nigerian Customs Service, and the Corporate Affairs Commission.

Under Section 22 (a), the NRS is guaranteed funding by retaining 4 percent of all revenues it collects, excluding petroleum royalties.

This compulsory Tax ID scheme is part of the Tinubu administration’s broader drive to tackle tax evasion, formalize the economy, and increase Nigeria’s revenue base amid mounting debt and declining oil earnings. Currently, Nigeria’s tax-to-GDP ratio stands at less than 10 percent, one of the lowest in Africa, compared to over 25 percent in South Africa.