Who Really Needs a Tax ID to Open a Bank Account? FG Explains

Many Nigerians have been worried about one question as the new tax rules take effect on January 1, 2026,  Will I need a Tax ID before I can use my bank account?

With several posts flying across social media, many people feared they would be blocked from banking if they didn’t apply for a new tax number.

To clear the confusion, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has given a simple explanation of who needs a Tax ID and who doesn’t.

Not everyone needs a Tax ID

The first important point Oyedele made is this: people who do not earn any income are exempt.
This means:

• Students
  
• Unemployed Nigerians
  
• Dependents
  
• Anyone with no source of earnings
  

They can continue using their bank accounts without Tax ID. Nothing is changing for them.

Oyedele added that the requirement is not new. Banks were already expected to request a Tax ID from taxable individuals since the Finance Act 2020, but the enforcement now falls under the new Nigeria Tax Administration Act (NTAA).

Who must provide a Tax ID?

Only taxable persons people who earn income through business, trade, or any economic activity are required to provide a Tax ID.

This includes:

• People running a business
  
• Self-employed individuals
  
• Freelancers and hustlers earning income
  
• Anyone receiving regular earnings from work, contracts, or services
  

This is simply saying that if you make money, you fall into the taxable group.

Oyedele explained that banks will request a Tax ID only from these people, not from every Nigerian.

Tax ID vs TIN — What’s the difference?

According to Oyedele, the government is moving to a unified identity system.

• “Tax ID” now replaces the old “TIN.”
  
• In the future, your NIN (for individuals) or CAC registration number (for companies) will automatically serve as your tax identifier.
  
• This change will remove multiple registrations and make compliance simpler.
  

So if you already have a TIN from the past, you don’t need a new Tax ID. Your old number still works.

How to get a Tax ID (If You Need One)

If you earn income and do not have a Tax ID:

• You can register free of charge on the Joint Tax Board portal.
  
• You may also walk into any FIRS, JTB or state IRS office.
  
• No biometric or physical card is required.
  
• Your existing TIN (if you have one) is still valid.
  

Oyedele advised Nigerians not to pay anyone to “process” the number, as the system is completely free.

What about businesses and companies?

Every business is expected to have a Tax ID.

• Small, unregistered businesses can use their personal Tax ID.
  
• Companies, NGOs and incorporated organisations already have a TIN automatically issued during CAC registration.
  
• Older businesses without a TIN can easily apply online or through any FIRS office using their CAC documents.
  

Foreign companies that earn active income from Nigeria must also register.

Nigerians in the diaspora

For Nigerians abroad, the rule depends on the type of account they operate:

• If the account receives income from Nigeria, a Tax ID may be required.
  
• If the account is simply for savings or personal use with no business inflow, no Tax ID is needed.
  

Your money is safe — No one is coming to take it

Oyedele dismissed fears that the government will use the Tax ID system to secretly withdraw money from people’s accounts.

He stressed that no money can be taken without a court order and due legal process.

Why the change matters

The FG says the new system will:

• Make tax administration simpler
  
• Close loopholes that allow some people to avoid paying tax
  
• Protect low-income Nigerians who are exempt
  
• Move the country closer to using NIN and CAC numbers as single identification points
  

Oyedele noted that most taxable Nigerians already have TINs from previous laws, so full compliance by January 2026 should not be difficult.

What salary earners should know

Workers earning the national minimum wage or less meaning those earning below N800,000 per year are exempt from income tax. Also, salaries and wages of military personnel remain completely tax-free.