A former Speaker of the House of Representatives, Yakubu Dogara, has said that under President Bola Tinubu’s tax reforms, it is now a legal requirement for every taxable person, including companies, to obtain a tax identification number (TIN) before opening or continuing to operate a bank account in Nigeria.
Mr Dogara, who also chairs the Board of the National Credit Guarantee Company (NCGC), said this on Tuesday while delivering a keynote address at the inaugural Distinguished Parliamentarian Lecture in Abuja.
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The lecture was themed “Navigating Tax Reforms in Nigeria: Insights on President Bola Tinubu’s Policies.”
He explained that the provision is embedded in the Nigeria Tax Administration Act (NTAA), one of four new tax reform laws signed into law by Mr Tinubu on 26 June 2025.
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The other three are the Nigeria Tax Act (NTA), the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA).
Collectively, they are referred to as the Acts and represent the most comprehensive overhaul of Nigeria’s tax system in decades.
Mr Dogara quoted Section 4 of the NTAA, stressing that the law makes compliance unavoidable. In his words:
“No doubt, the NTAA, 2025 mandates the use of Tax Identification Numbers (Tax ID) for certain transactions. Section 4 of the NTAA requires all taxable persons to register with the tax authority and obtain a Tax ID. A ‘taxable person’ is someone who carries on trade, business, or other economic activity to earn income.
“Banks and other financial institutions are required to request a Tax ID from taxable persons. But individuals who do not earn income and do not fall within the definition of taxable persons are not required to obtain a Tax ID. That being the case, it is now a requirement of law that every taxable person including artificial persons must obtain a Tax ID before opening or continuing to operate a bank account in Nigeria.”
The former Speaker noted that the new framework consolidates 16 existing tax statutes into four principal laws, creating a simplified and modernised structure.
He said the reforms are intended to protect the poor, empower businesses, encourage investment, and ensure fairness in taxation.
He argued that the move would significantly expand the country’s tax base, curb evasion, and enhance transparency in financial transactions.
By tying banking operations to tax compliance, he noted, the reforms bring Nigeria closer to international standards where financial institutions act as compliance partners for tax authorities.
Mr Dogara acknowledged that many Nigerians may initially view the tax ID requirement as burdensome, but he insisted that its long-term benefits far outweigh the inconvenience.
He described the 2025 tax reform as one of the boldest economic policy shifts of the Tinubu administration, alongside fuel subsidy removal and exchange-rate unification.
He urged Nigerians to embrace the new system, saying it has the potential to build a stronger, more competitive economy if properly implemented.
Four new tax laws signed by Tinubu
Nigeria’s tax reform laws, which were enacted in June, have since been published in the official gazette, according to Taiwo Oyedele, chair of the Presidential Committee on Fiscal Policy and Tax Reforms.
Mr Oyedele, in a post on X (formerly Twitter), described the reforms as “a bold step to overhaul Nigeria’s tax landscape in order to ensure fairness, efficiency, and sustainability.”
The reforms, which accompany other bold economic measures such as fuel subsidy removal and exchange-rate unification, include far-reaching changes to income taxation, capital gains, digital assets, and the introduction of new compliance structures.
The Nigeria Tax Act (NTA) consolidates multiple existing statutes, expands the tax base to cover digital services and foreign exchange gains, and introduces a minimum effective tax rate for large corporations.
The NTAA modernises tax assessment, collection, and dispute resolution while mandating the use of tax IDs.
The NRSA replaces the Federal Inland Revenue Service (FIRS) with a central Nigeria Revenue Service, while the JRBA harmonises revenue-sharing and coordination between the federal and state governments.
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