The Nigeria Tax Administration Act 2025 requires all Nigerians engaged in taxable activities to obtain a Taxpayer Identification Number (Tax ID) by January 1, 2026. The law applies to individuals and businesses in banking, insurance, stock trading, and other financial services.
President Bola Tinubu approved the Act, which is detailed in Part II, Section 4.
It states that, “Every Taxable person shall register with the relevant Tax Authority and obtain a Taxpayer Identification Card (Tax ID) for the purpose of compliance with tax obligations.”
The law extends compliance to all ministries, departments, and agencies at federal, state, and local levels. Section 6(1) also requires foreign companies offering taxable goods or services in Nigeria to register for a Tax ID. These businesses must operate under Nigerian tax regulations.
Section 7(3) empowers tax authorities to issue Tax IDs to individuals or businesses that fail to register voluntarily. Authorities may refuse applications but must notify applicants within five business days.
According to Section 8, a valid Tax ID is now mandatory before signing contracts with federal or state governments. Subsection 8(2) further states that no one may open or operate a bank account, trade stocks, or engage in insurance without a valid Tax ID once the law takes effect.
The Act also provides for suspension or deregistration of Tax IDs. Section 10 requires individuals or businesses planning to pause or close operations to inform the tax office within 30 days. Depending on circumstances, the Tax ID may be marked “dormant” or fully deregistered.
This reform aims to improve tax compliance and strengthen revenue collection across Nigeria’s economy.
The Act forms part of a broader fiscal overhaul approved by President Bola Tinubu on June 26 at the Presidential Villa.
