By Princess G. Adebajo-Fraser, MFR
Founder, The National Patriots
A New Financial Reality
From January 1, 2026, no Nigerian will be able to open or operate a bank account, run a business, or access financial services without a Tax Identification Number (Tax ID or TIN). This is the core of the Nigeria Tax Administration Act, 2025, signed by President Bola Ahmed Tinubu in August.
It is a bold reform designed to strengthen Nigeria’s broken tax system and ensure that everyone — individuals, businesses, and especially multinationals — contributes fairly to national development.
Why This Law Matters
Nigeria’s tax system has been notoriously weak:
Population: 200 million+
Registered taxpayers: 10 million
Bank account holders: 60 million+
Tax-to-GDP ratio: 10% (global average: 34%)
This gap explains why Nigeria struggles to fund infrastructure, healthcare, and education, despite having Africa’s largest economy. The new law ties tax compliance to financial access, meaning no tax ID, no banking.
What the Law Says
The Act makes it mandatory for:
1. Individuals – No bank account without a Tax ID.
2. Businesses – From roadside traders to multinationals, everyone must register.
3. Government Agencies – Must obtain Tax IDs before entering contracts.
4. Foreign Suppliers – Must register with the new Nigeria Revenue Service (NRS) before doing business in Nigeria.
5. Banks and Insurers – Barred from serving anyone without a valid Tax ID.
The FIRS has been abolished and replaced by the NRS, signaling government’s seriousness about enforcement.
Why Nigerians Should Support This
*”For too long, Nigeria has depended on oil revenues while big companies have escaped fair taxation. The new Tax ID law means these corporations — from Dangote to MTN and DSTV — must finally contribute their share. Their taxes can repair the roads their trucks destroy, fund free healthcare, education, and cover state budgets.
Low-income earners need not fear; they will not pay tax, only register for transparency. The real target is wealthy corporations and high-net-worth individuals. This is how advanced nations like the UK fund free education and healthcare through taxes. Why should Nigeria be different?”*
— Princess G. Adebajo-Fraser, MFR
Global Perspective
Other countries have shown the power of taxation:
United States – Taxes fund Social Security, Medicare, and infrastructure (27% of GDP).
United Kingdom – NHS, social housing, and education are paid from tax (33% of GDP).
Scandinavian Nations – Tax-to-GDP ratios above 40% fund world-class healthcare, free universities, and social welfare.
Taxation is not punishment; it is a social contract between citizens and government.
Risks and Concerns
The reform is bold but comes with challenges:
Exclusion of the Poor – 38 million Nigerians remain unbanked.
Bureaucracy & Corruption – Risk of officials exploiting registration.
Awareness Gap – Millions may miss the deadline without proper sensitization.
The NRS must ensure a digital-first, transparent process to make registration easy, quick, and fair.
What Nigerians Must Do
1. Prepare now – Don’t wait until 2026.
2. Get documents ready – NIN, BVN, ID, and business papers if applicable.
3. Register early – Avoid last-minute chaos.
4. See the big picture – Taxes are an investment in Nigeria’s future.
The Way Forward
Nigeria has never had a strong tax culture. Many citizens see tax as a burden, while corporations exploit loopholes. This reform is a chance to reset the system and build accountability. If big companies and the wealthy pay their fair share, Nigeria can reduce borrowing, invest in services, and deliver real improvements in citizens’ lives.
For this to succeed, government must also play its part — ensuring transparency and channeling tax revenues into visible projects that directly benefit the people.
Conclusion
The New Tax ID Law is more than a policy; it is a national test. Nigerians must embrace it, corporations must comply, and government must deliver results.
If successful, this reform will mark the birth of a true tax culture where every naira collected is reinvested in the people — building a Nigeria that stands on the contributions of its citizens, not just oil.
Princess G. Adebajo-Fraser, MFR
The National Patriots.
