Tax ID Not Yet Mandatory for Bank Accounts – JTB

Nigerians will not be denied access to their bank accounts or financial services due to the absence of a Tax Identification Number (Tax ID) starting January 1, 2026. This assurance comes from the Joint Tax Board (JTB).

The clarification comes amid concerns following the signing of four new Tax Acts by President Bola Ahmed Tinubu, which take effect from January 1, 2026.

Reports had suggested that Section 8(2) of the new Tax Administration Act makes Tax ID mandatory for operating bank accounts or engaging in insurance, stocks, and other financial services once the law is implemented.

But in a statement issued in Abuja on Monday by its Head of Corporate Communications, Akpe Adoh, the JTB said such interpretations were misleading.

“Nigerians are hereby assured that they will continue to have access to their bank account and also continue to carry out financial transactions even beyond January 1, 2026,” the board stated.

The JTB said the new tax reforms are designed to simplify compliance, reduce multiple taxation, and exempt vulnerable individuals and small businesses from certain tax obligations.

“These reforms include eliminating multiple taxation, granting tax exemptions to vulnerable individuals and small businesses, and ensuring that the majority of Nigerians will pay lower taxes under the new tax regime,” the statement read.

The JTB disclosed that it is working with the Federal Inland Revenue Service (FIRS) and state revenue agencies to create a harmonised national tax identification system.

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The new system, it said, would automatically generate Tax IDs for individuals using their National Identification Number (NIN) and for businesses using their Corporate Affairs Commission (CAC) registration numbers.

The JTB emphasised that no Nigerian would be locked out of banking or financial services because of the reforms.

“Again we restate for the avoidance of doubt that Nigerians will continue to have access to their bank accounts and carry out financial services beyond January 1, 2026, and no one will be denied access on account of not having a Tax ID,” the board assured.

The JTB’s position contrasts with the wording of the new law, leaving the public awaiting how the provisions will be implemented.

The tax laws under President Bola Tinubu’s administration have already attracted criticisms, especially the proposed 5 per cent Petroleum Products Tax.

This prompted the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to clarify last week that there was no immediate plan to enforce the levy.