The Federal Government has made it compulsory for all taxable Nigerians to obtain a Taxpayer Identification (Tax ID) when the new tax laws come into effect in January 2026. The requirement is contained in the Nigeria Tax Administration Act, 2025, Part II Section 4, recently signed into law by President Bola Tinubu. The Act mandates that every taxable person, including ministries, departments, and agencies across federal, state, and local levels, must register with the relevant tax authority to obtain a Tax ID.
The law also applies to non-resident persons who provide taxable goods and services in Nigeria, requiring them to obtain a Tax ID and fulfill their tax obligations. The relevant tax authority may refuse to issue a Tax ID based on available information, provided the applicant is informed of such a decision within five working days.
From January 2026, a Tax ID will be a condition for operating bank accounts, engaging in insurance, stocks, and allied services, and entering into contracts with federal and state governments. The Act further allows suspension or deregistration of a Tax ID if the holder temporarily or permanently ceases business operations, provided the relevant tax authority is notified within 30 days. In such cases, the ID will be classified as dormant or deregistered accordingly.
Additionally, the Nigeria Revenue Service Act, 2025, vests enormous powers in the Executive Chairman, who also serves as Chairman of the Service’s Governing Board. The board comprises representatives from the Ministries of Finance, National Planning, Petroleum, the Attorney-General of the Federation, the Central Bank, Customs, Corporate Affairs Commission, and other federal institutions. The Service will be funded by a 4 percent deduction from all revenues collected, excluding petroleum royalties, while the Chairman will serve a four-year renewable term.
Source: https://www.vanguardngr.com/
