🍔 Quick Bite: From January 2026, you won’t be able to open or run a bank or fintech account in Nigeria without a Tax ID. The government says it’s about tightening compliance. But with millions still without a national proof of identification or tax clearance numbers, the risk of being locked out of the system stubbornly persists. Fintechs that built their edge on easy onboarding now have yet another hurdle to clear.
🧠 The Breakdown
Come January 2026, opening a bank account in Nigeria will require a Tax ID. President Bola Tinubu’s sweeping tax reforms, signed into law through the Nigeria Tax Administration Act, will fundamentally alter how over 230 million Nigerians access financial services.
The change affects everyone. Individuals, small traders, multinational corporations, government agencies, and foreign businesses operating in Nigeria are required to obtain Taxpayer Identification Numbers (TINs) before engaging in banking, insurance, or investment activities. No exceptions.
This represents one of the most significant changes in Nigerian financial regulation in decades. Previously, tax registration primarily concerned formal businesses and high earners. Now, anyone seeking to open or maintain a financial account needs tax documentation.
Banks, fintechs, insurers and stockbrokers must verify every customer’s Tax ID and report significant transactions to authorities. The requirement extends beyond domestic players to foreign individuals and companies earning Nigerian income, potentially affecting diaspora remittances and cross-border business flows worth billions of dollars annually.
Click to signupAn identity system still catching up
As of June 2025, the National Identity Management Commission (NIMC) reported 121 million issued NINs against Nigeria’s population of approximately 238 million. This leaves tens of millions without the foundational identity record needed for Tax ID mapping.
NIMC has been racing to close this gap, adding seven million new NINs in the first half of 2025 alone. The Commission aims to register 95% of Nigerians by year-end, but the arithmetic remains daunting with less than four months left this year..
The Tax ID application process presents additional bottlenecks. Despite official claims of swift turnaround times, with some offices providing same-day service. Real-world evidence suggests frequent delays, where applicants are required to wait for months before getting a tax ID issued to them through online channels.
Fintechs, banks and financial inclusion
Nigeria’s financial sector has made remarkable strides in recent years, with account ownership expanding rapidly across low and middle-income segments. According to EFInA’s 2023 Access to Finance survey, about 26% of Nigerian adults are financially excluded, which corresponds to approximately 29 million people without a formal account. Some reports push that number higher, citing nearly 40 million excluded when considering broader barriers such as cost, access and documentation.
Policies linking account access to tax registration could inadvertently sideline vulnerable groups, deepening financial exclusion rather than broadening formal sector participation.
Fintech startups and digital banks, whose business models depend on rapid customer onboarding, face additional challenges. Many Nigerian neobanks previously required only basic identification and a Bank Verification Number (BVN) for account opening. They must now adapt acquisition processes to accommodate tax verification.
The impact also extends internationally. Non-residents providing goods or services in Nigeria must obtain Tax IDs before conducting business. This affects diaspora entrepreneurs, foreign companies, and remittance platforms handling naira transactions. Given that diaspora remittances provide crucial foreign exchange, implementation difficulties could have macroeconomic consequences.
Regional context and implementation concerns
Nigeria joins regional peers in tying financial services to tax compliance. Ghana has long mandated TINs for financial transactions: since 2018, anyone opening a bank account or registering a vehicle, company or government contract must have a TIN. Kenya likewise requires a KRA PIN (its Tax ID) for basic activities, explicitly including opening a bank account. South Africa’s system also ties financial services to tax numbers (e.g. taxpayers often must give their SARS tax reference number when opening brokerage accounts or applying for loans).
The Tax ID mandate forms part of President Tinubu’s comprehensive revenue modernisation programme. Reforms consolidate scattered tax legislation, establishing a new Nigerian Revenue Service and introducing digital enforcement tools.
Nigeria’s tax-to-GDP ratio of roughly 10% significantly trails regional peers like Kenya (16%) and Ghana (13%). By requiring tax registration for banking access, the government aims to bring informal sectors and digital platforms into the tax net, which have previously avoided scrutiny. The strategy targets Nigeria’s vast informal economy, where millions earn livelihoods outside formal tax structures.
However, implementation will determine success. Effective rollout could bring millions into the tax net whilst providing clearer economic visibility. Poor execution risks creating bottlenecks that invite inconvenience, potentially undermining both financial inclusion and revenue collection objectives.
For now, banks, fintechs, and their customers face an urgent race against time to navigate Nigeria’s latest financial regulatory change.
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