By: Peace Udugba.
President Bola Tinubu has signed the new Tax Administration Act into law, introducing a major shift in Nigeria’s financial system. Under the law, starting January 1, 2026, Nigerians will be required to present a Tax Identification Number (TIN) to open or operate any bank account.
The new policy, part of sweeping reforms aimed at boosting revenue and improving tax compliance, also applies to insurance, stock trading, and government contracts, Without a valid TIN, individuals and businesses will be unable to access these services.
The law also abolishes the Federal Inland Revenue Service (FIRS) replacing it with a more autonomous body — the Nigeria Revenue Service (NRS) — which will now oversee tax collection, enforcement, and compliance across the country.
The move has sparked mixed reactions. While the government argues it will widen the tax net and reduce evasion, experts warn it may affect Nigeria’s 38 million unbanked citizens, most of whom operate in the informal economy and lack access to formal identification or tax registration.
Analysts say the government must roll out massive public sensitization and make the TIN registration process seamless and inclusive to avoid financial exclusion and disruption to daily economic activity. Banks and financial institutions are also expected to begin preparing for the transition ahead of the 2026 deadline.
