Can You Operate a Bank Account Without Tax ID? FG Explains

For weeks, Nigerians have been wondering and bothered over reports suggesting that bank accounts could soon be inaccessible without a Tax Identification Number (Tax ID or TIN). 

With the federal government rolling out new tax reforms that take effect from January 1, 2026, many believed financial transactions would be tied strictly to having a Tax ID.

But the Federal Government, through the Joint Tax Board (JTB), has now cleared the air: Nigerians will not be barred from using their bank accounts even if they do not yet have a Tax ID.

Why the clarification was needed

The confusion arose following the signing of four new tax laws by President Bola Tinubu. Among them, the new Tax Administration Act triggered concerns after reports claimed it would make Tax IDs mandatory for operating bank accounts.

This quickly sparked public outcry, especially from small business owners and everyday account holders who feared being cut off from financial services.

JTB’s Position

In a statement issued by Akpe Adoh, Head of Corporate Communications at the JTB, the Board described the reports as misleading.

According to the statement, Nigerians should not panic, as access to bank accounts will not be disrupted in 2026. 

The JTB emphasized that people will continue to withdraw, deposit, transfer, and perform other transactions regardless of whether they currently have a Tax ID.

Automatic Tax ID Generation

While Nigerians won’t be locked out of the banking system, the government is still pressing ahead with tax reforms aimed at modernizing the system.

To make compliance easier, the JTB has introduced an automated process:

Individuals will have Tax IDs generated using their National Identification Numbers (NINs).

Businesses will automatically receive Tax IDs linked to their Corporate Affairs Commission (CAC) registration numbers.

This unified system, developed in partnership with the Federal Inland Revenue Service (FIRS) and state tax authorities, is expected to reduce duplication and make taxation more transparent.

What this means for Nigerians

For citizens, this development means two key things:

Banking continues without disruption. Whether you already have a Tax ID or not, your bank account remains active beyond January 1, 2026.

Tax registration will be simpler. You won’t need to go through lengthy processes to obtain a Tax ID, it will be automatically assigned through existing national identity systems.

What you should know

The Tinubu administration says the broader goal of these reforms is to create a tax system that is fair, easier to comply with, and more supportive of economic growth. This includes reducing multiple taxes, giving relief to small businesses, and encouraging voluntary compliance.

By linking Tax IDs to NINs and RC numbers, the government also hopes to bring more people into the formal tax net without adding barriers to banking or business operations.

Despite earlier fears, Nigerians will not lose access to their bank accounts for not having a Tax ID. 

Instead, the government has set up a system where Tax IDs will be automatically generated, ensuring that financial transactions remain uninterrupted. The message from the JTB is clear: keep banking, don’t panic, your Tax ID will find you.

Source: BusinessElitesAfrica | Read the Full Story…