FG Clears Air On Nigerians Who Don't Need Tax ID to Operate Bank Account

The Federal Government has clarified that millions of Nigerians who earn no income will not be required to obtain a Tax Identification Number before they can run a bank account, easing growing public anxiety over the forthcoming tax reforms. 

The clarification resets the national conversation, placing the spotlight on those who are fully exempt rather than on the earlier fears of mass bank-account restrictions.

Officials driving the reform explained that the exemption covers students, dependents, and other individuals who do not engage in any form of income-generating activity. 

They noted that banks will continue to operate their accounts without demanding a tax ID. 

One senior official involved in the reforms remarked that the policy was designed “to protect non-earners from unnecessary bureaucracy” and ensure that “only those who make taxable income are brought into the net”.

The explanation followed concerns emerging across the country after the government announced that new tax administration rules would take effect on January 1, 2026. 

The provisions are anchored in the Nigerian Tax Administration Act (NTAA), which was signed into law after President Bola Ahmed Tinubu approved a new tax framework in June 2025.

Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, restated the exemption in a message shared on his X account. 

He maintained that only taxable persons, those who make income from business, trade, or any economic activity, must obtain a tax ID to maintain their bank accounts once the reforms commence.

Oyedele stressed that the rule is not entirely new, noting that the Finance Act of 2020 had already introduced similar compliance obligations. However, the NTAA now provides a firmer legal backing. 

“Students and dependents have no reason to worry. They don’t need a tax ID because they are not income earners,” he said.

He added that Nigerians already operating with existing Tax Identification Numbers will not be required to obtain any new identifiers under the updated regime. 

Nevertheless, he cautioned that anyone who earns income without a tax ID “may face challenges running their bank accounts in the near future”.

The government’s clarification is expected to ease public tension, especially among young Nigerians and families who feared the reforms would force non-earners into the tax system. 

The debate now shifts toward how the reforms will strengthen compliance among actual income earners as January 2026 approaches.