Nigerians Can Breathe Easy, Tax ID Not Compulsory For Bank Accounts Yet

The Joint Tax Board (JTB) has assured Nigerians that they will not be denied access to their bank accounts or financial services from January 1, 2026, due to the absence of a Tax Identification Number (Tax ID).

The clarification comes in response to growing public concern following the signing of four new Tax Acts by President Bola Ahmed Tinubu, which are set to take effect from January 1, 2026. Reports had suggested that Section 8(2) of the new Tax Administration Act would make a Tax ID mandatory for operating bank accounts or accessing financial services such as insurance and stock trading.

In a statement issued in Abuja on Monday by its Head of Corporate Communications, Akpe Adoh, the JTB described such interpretations as misleading. “Nigerians are hereby assured that they will continue to have access to their bank accounts and carry out financial transactions even beyond January 1, 2026,” the board stated.

According to the JTB, the reforms are aimed at simplifying compliance, eliminating multiple taxation, and exempting vulnerable individuals and small businesses from certain tax burdens. “These reforms include granting exemptions to low-income earners and small businesses while ensuring most Nigerians pay less tax under the new regime,” the statement added.

The board further disclosed that it is collaborating with the Federal Inland Revenue Service (FIRS) and state revenue agencies to create a unified national tax identification system. Under this arrangement, individuals will automatically be assigned Tax IDs linked to their National Identification Number (NIN), while businesses will obtain theirs through Corporate Affairs Commission (CAC) registration.

Reiterating its position, the JTB stressed that no citizen would be excluded from banking or financial services because of the new tax regime. “For the avoidance of doubt, Nigerians will continue to have access to their bank accounts and financial services beyond January 1, 2026, and no one will be denied access on account of not having a Tax ID,” the board assured.

However, the JTB’s clarification appears to contrast with the explicit wording of the new law, leaving many Nigerians watching closely to see how the provisions will be applied. Already, President Tinubu’s new tax framework has attracted criticism, particularly over the proposed 5 per cent Petroleum Products Tax, which prompted Finance Minister and Coordinating Minister of the Economy, Wale Edun, to clarify last week that there was no immediate plan to enforce the levy.