Nigerians can’t open, operate bank accounts from 2026 unless they do this
The Nigerian federal government has announced a new requirement for opening and operating bank accounts, mandating the declaration of all foreign bank accounts held by individuals and entities.
This measure is part of a broader effort to enhance financial transparency, combat illicit financial flows, and improve tax compliance within the country.
From January 1, 2026, Nigerians and non-residents will not be able to open or operate a bank account without a Tax Identification (Tax ID).
The new rule is contained in the Nigeria Tax Administration Act, 2025, which was recently signed into law by President Bola Tinubu.
The Act also extends the requirement to other financial and business dealings, making a Tax ID compulsory for insurance, stock market transactions, and contracts with federal and state governments.
According to the law, every taxable person must register with the relevant authority to obtain a Tax ID card.
Ministries, departments, and agencies at federal, state, and local levels are equally expected to secure Tax IDs.
Non-residents who supply taxable goods and services to persons in Nigeria will also be required to register and pay tax in the country.
The Act empowers tax authorities to issue a Tax ID to people who fail to apply, or to refuse an application if available information warrants it, with feedback to be given within five working days.
Business owners who suspend or permanently close their operations must notify the tax authority within 30 days, after which their Tax ID will be marked dormant or deregistered.
The same legislation establishes the Nigeria Revenue Service, with its Executive Chairman serving as head of the Governing Board for a renewable four-year term.
The Service will be funded through a four percent deduction from all revenues it collects, excluding petroleum royalties.
This new requirement aligns with global initiatives aimed at increasing financial transparency and combating illicit financial flows. For instance, the U.S. government, through the Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS), requires U.S. persons to report foreign financial accounts if the aggregate value exceeds $10,000 at any time during the calendar year.
This is done by filing a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114. The FBAR is a tool used to identify individuals who may be using foreign accounts to circumvent U.S. law or to hide unreported income.
When opening a bank account in the U.S., financial institutions are legally required to implement a Customer Identification Program (CIP) as part of their due diligence, also known as Know Your Customer (KYC) [5]. This program mandates the collection of specific information from applicants, including name, date of birth, address, and an identification number such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for U.S. citizens and residents.
For non-U.S. citizens, acceptable identification numbers can include a Taxpayer Identification Number, passport number, alien identification card number, or other government-issued documents evidencing nationality or residence with a photograph. Banks also require verification of this information through documents like a driver’s license or passport, and may use credit reporting agencies for additional verification. While U.S. banks do not typically require the declaration of foreign bank accounts as a prerequisite for opening a domestic account, the FBAR filing requirement is a separate obligation for U.S. persons with foreign financial interests.
