In a major development for the Nigerian banking and tax ecosystem, Nigeria’s Fidelity Bank Plc has announced that starting January 1, 2026, customers whose bank accounts are not linked to either a Tax Identification Number (TIN) or a National Identification Number (NIN) may face transaction restrictions on their accounts.
The announcement is part of wider regulatory changes under the Nigeria Tax Administration Act (NTAA) 2025, which seeks to harmonise identity and tax data across financial systems and improve national tax compliance.
This policy has broad implications that go beyond Fidelity Bank, as it aligns with a nationwide mandate that applies to all banking institutions.
With the new law set to take effect in just a few weeks, millions of Nigerian bank account holders are encouraged to act quickly to update their account records to avoid disruption of key financial services such as transfers, withdrawals, and bill payments.
What You Should Know About the Nigeria Tax Administration Act (NTAA) 2025
The Nigeria Tax Administration Act (NTAA) 2025 is part of a suite of tax reform laws signed into law in 2025 designed to modernise and strengthen tax administration in the country.
It consolidates earlier tax mandates and introduces new compliance requirements, particularly around taxpayer identification.
At its core, the NTAA requires every “taxable person” to register with a tax authority and obtain a Tax Identification Number (Tax ID or TIN).
Under Section 4 of the Act, financial institutions, including banks, are mandated to request and verify TINs before opening or operating accounts for individuals and businesses.
Importantly, a “taxable person” is anyone who earns income from trade, business, or economic activity.
For many individuals who may not yet have a TIN, their NIN can function as a substitute, effectively linking their identity to their tax profile.
The law aims to standardise and merge identity and tax data to reduce duplication, broaden the tax base, and enhance transparency in financial and economic transactions.
The NTAA, however, does not require every Nigerian to pay tax, only those who earn taxable income. There are targeted exemptions for non‑income earners such as students and dependents, who may not need to obtain a TIN just to access financial services.
What This Means for Nigeria’s Bank Users
For everyday bank customers, the NTAA’s enforcement through banks carries significant practical implications.
Linking Your Account to NIN or TIN Is Mandatory
From January 1, 2026, Fidelity Bank and other Nigerian banks (including Access, Zenith, UBA, Ecobank, etc.) have warned that accounts not linked to a valid TIN or NIN could be restricted from transacting.
This means customers may be unable to send money, receive funds, make withdrawals, or complete other routine banking activities unless they update their information in time.
Who Must Comply
- Taxable individuals and businesses: Required to have and link a valid TIN.
- Individuals without existing TIN: Must link their NIN to their bank account, which serves as a de‑facto tax identifier.
- Non‑income earners (e.g., students, dependents): Clarifications by federal authorities suggest these groups will not be denied access solely for lacking a TIN, provided their identity is verified through NIN.
Other Financial Services Also Impacted
The requirement extends beyond bank accounts to services such as insurance products, pension accounts, and virtual asset transactions, where both TIN and NIN may be required for compliance with broader financial regulations.
Methods of Linking Your TIN or NIN to Your Bank Account
To avoid restrictions, customers must update their bank records before the deadline. The process typically involves one of the following:
Bank Branch Visits
Customers can visit any Fidelity Bank branch (or their respective banks) and provide their TIN or NIN to a customer service representative. Ensure you have your valid ID and relevant documents on hand.
Digital Platforms and USSD
Many banks offer digital channels such as:
- Bank mobile apps, where you can update your profile details and upload NIN or TIN information.
- USSD codes, such as dialing a specific bank USSD menu (e.g., 77002# for Fidelity Bank) to follow prompts and submit your NIN.
Online Tax Authority Portals
For those who do not yet have a TIN, the Joint Tax Board (JTB) and Federal Inland Revenue Service (FIRS) provide online registration platforms to apply for a Tax ID. This process usually requires your NIN as a primary identifier.
Why This Matters in 2026 and Beyond
The implementation of the NTAA, and its enforcement through banks, is part of a broader strategy to strengthen Nigeria’s fiscal framework, improve tax compliance, and integrate financial data systems. The expected outcomes include:
Broader Tax Base
By linking bank accounts to tax identifiers, more income‑earning individuals and businesses are brought into the tax net, which can increase government revenue and support public services.
Reduced Tax Evasion and Data Duplication
A harmonised system reduces multiple tax identification numbers and mismatched identity records, helping tax authorities better monitor compliance.
Increased Financial Transparency
With tax compliance tied to everyday financial transactions, authorities can better track economic activity, which supports planning and economic policy effectiveness.
Incentives for Formalisation
The policy encourages micro and small enterprises to formalise operations, which may enhance access to formal credit, investment opportunities, and broader economic participation.
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