Who must have a Tax Identification Number under Nigeria’s new tax law?

Any individual or business that earns income through employment, trade, or other economic activity must have a Tax Identification Number. Students and dependants who do not earn income are exempt.

When does the tax ID requirement for bank accounts take effect?

The requirement takes effect from 1 January 2026, in line with the Nigerian Tax Administration Act.

Will bank accounts be restricted without a tax ID?

Taxable persons who do not have a tax ID may face difficulty operating their bank accounts in the future, although no immediate blanket restriction has been announced.

Are existing taxpayers required to obtain a new tax ID?

No. Individuals and businesses that already have a valid Taxpayer Identification Number do not need to register again.

Is the new tax law designed to increase taxes?

No. The reforms aim to expand the tax base, simplify compliance, and provide tax relief for low-income earners rather than increase the burden on existing taxpayers.

Category: Business News

Petrol May Climb to ₦1,000 as Dangote Raises Price

Petrol prices across Nigeria could soon approach ₦1,000 per litre after the Dangote Petroleum Refinery increased its gantry price to ₦874 per litre.

The adjustment, up from ₦774, follows a surge in global crude oil prices. Retail marketers say the new rate may push pump prices to between ₦980 and above ₦1,000 per litre, depending on location and transport costs.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, said the rise reflects pressure from the international oil market. “The pump price will likely range between ₦980 and over ₦1,000 per litre,” he said. “This is largely due to the recent hike in global crude oil prices.”

A senior refinery official confirmed the review, citing changes in global crude fundamentals and replacement costs. The refinery also notified marketers that petrol is available at ₦874 per litre.

The increase came after a brief suspension of petrol loading at the plant in early March when crude prices climbed above $80 per barrel. Diesel supply continued during that period. Several depot owners also paused sales to avoid losses linked to replacement costs.

Oil markets have turned volatile amid rising tensions between the United States and Iran. JPMorgan Chase warned that Brent crude could rise to $120 per barrel if conflict disrupts flows through the Strait of Hormuz. The bank said Gulf producers may sustain output for only a short period before storage limits force wider shutdowns.

The Strait handles about a fifth of global oil supply. Shipping activity has slowed, and insurance premiums have risen, raising costs across the supply chain.

Despite the price pressure, Aliko Dangote, president of the Dangote Group, says his long-term focus is industrial growth. In a recent interview with The New York Times, he said Africa must expand refining, power generation and steel production to drive development.

The refinery, with capacity of 650,000 barrels per day, employs about 30,000 workers. The group plans to expand into electricity and port infrastructure and may list refinery shares on the Nigerian stock market.

For now, consumers face the immediate impact. Nigeria’s fuel prices remain tied to global oil trends, even as domestic refining grows. If crude prices rise further, analysts warn that petrol and diesel could climb again in the weeks ahead.

March 3, 2026
Global Central Bankers Back Fed Chair Powell Amid US Probe

Global central bank leaders have publicly backed US Federal Reserve Chair Jerome Powell after federal prosecutors opened a criminal investigation into his role in a $2.5bn renovation of the Fed’s Washington headquarters.

In a joint statement issued on Tuesday, senior figures including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey said they stood “in full solidarity” with Powell and the Federal Reserve system.

They said the independence of central banks was vital for economic stability and public trust. “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” the statement said, adding that this independence must be preserved while respecting the rule of law.

The statement described Powell as a respected colleague who has served with integrity and remained focused on his mandate. Central bank chiefs from Brazil, Switzerland, Sweden, Denmark, South Korea, Australia and Canada also signed the message.

The show of support follows Powell’s confirmation on Sunday that the US Department of Justice is investigating the renovation project and his related testimony to Congress. The Fed chair said the inquiry was linked to political pressure over interest rate policy.

Powell has faced repeated calls from President Donald Trump to cut interest rates faster and deeper. In a video statement posted on the Fed’s official X account, Powell said the investigation reflected frustration over the Fed’s refusal to follow political demands.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public,” he said.

Powell warned that the outcome of the investigation could shape the future of US monetary policy. He said the case raised a broader question about whether interest rates would continue to be set using economic evidence or be influenced by political pressure.

Markets have remained cautious as investors assess the potential impact on policy independence.

January 13, 2026
NCC, CBN set 30-second refund rule for failed airtime, data transactions

Nigeria’s telecoms and banking regulators are preparing to introduce a joint refund framework that will require near-instant refunds for failed airtime and data purchases.

The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) said the new system is designed to address complaints where subscribers are debited but do not receive airtime or data due to network faults, system failures or human error.

In a statement signed by NCC spokesperson Nnenna Ukoha, the regulators said affected customers will be entitled to a refund within 30 seconds if a transaction fails, whether the fault occurs at the bank or telecoms operator level. Where a transaction remains pending, refunds must be completed within a maximum of 24 hours.

The framework follows months of consultations involving the NCC, CBN, mobile network operators, value-added service providers and deposit money banks. Regulators said the talks were triggered by a surge in complaints over delayed or unresolved refunds after unsuccessful top-ups.

Under the new arrangement, both sectors will operate under a unified, enforceable service-level agreement that clearly assigns responsibility for transaction failures and dispute resolution. Operators will also be required to notify customers by SMS of every successful or failed transaction.

The policy covers common issues such as airtime sent to ported lines, wrong numbers and incorrect data purchases.

The NCC’s Director of Consumer Affairs, Freda Bruce-Bennett, said failed top-ups consistently rank among the commission’s top consumer complaints.

“We were determined to resolve this issue within the shortest possible time, in line with our mandate to protect consumers,” she said.

She added that the framework includes a central monitoring dashboard jointly hosted by the NCC and the CBN. The platform will allow regulators to track transaction failures, identify the responsible party, monitor refunds and flag breaches in real time.

According to the NCC, mobile operators and banks have already refunded more than ₦10bn to customers while preparations continue. Full implementation is expected to begin on 1 March 2026, subject to final approvals and technical integration across all parties.

January 9, 2026
NNPCL Cuts Petrol Price to ₦815 Per Litre in Abuja

The Nigerian National Petroleum Company Limited has reduced the pump price of premium motor spirit at its retail outlets, lowering the cost to ₦815 per litre from ₦835.

Checks by reporters across parts of Abuja on Monday showed that the new price had taken effect at NNPCL filling stations in Wuse Zones 4 and 6, along the Keffi–Abuja Road and on the Kubwa Expressway. Station attendants confirmed that the adjustment was implemented on Sunday evening.

The ₦20 reduction comes as competition intensifies in Nigeria’s downstream oil sector, driven largely by price moves linked to the Dangote Refinery. Despite the cut, NNPCL’s new price remains ₦79 higher than the ₦739 per litre currently sold at MRS filling stations supplied by the Dangote Refinery nationwide.

NNPCL last reviewed its petrol price on 19 December 2025, when it announced an ₦80 reduction to ₦835 per litre. That decision followed Dangote Refinery’s cut in its gantry price to ₦699 per litre, a move that triggered a broader price war among fuel marketers.

The latest adjustment suggests that market pressures are continuing to influence pump prices, particularly in major urban centres. Consumers have welcomed the gradual reductions but many say prices remain high relative to incomes, especially amid rising transport and living costs.

Industry analysts say further price changes may occur as refiners, marketers and regulators respond to supply dynamics, refinery output and competition. For now, motorists in Abuja are seeing modest relief at NNPCL outlets, even as cheaper alternatives remain available at select private filling stations.

January 5, 2026
CBN Ends COVID Relief as Bad Loans Rise Above Safe Limit in Banks

Nigeria’s banking sector recorded a rise in bad loans in 2025 after the Central Bank of Nigeria (CBN) withdrew regulatory forbearance introduced during the COVID-19 pandemic, according to its latest macroeconomic outlook report.

The apex bank said the industry’s non-performing loans (NPL) ratio climbed to an estimated seven per cent, above the five per cent prudential benchmark.

It explained that the increase followed the end of temporary reliefs that had allowed banks to restructure pandemic-hit loans without classifying them as bad.

“The Non-performing Loans ratio stood at an estimated 7.00 per cent relative to the prudential limit of 5.00 per cent,” the report stated, linking the rise directly to the withdrawal of COVID-era forbearance.

Regulatory forbearance had helped banks cushion the impact of the pandemic by delaying the recognition of stressed loans. With the policy now fully withdrawn, several restructured facilities have crystallised as non-performing, pushing the industry ratio above the regulatory ceiling.

Despite the rise, the CBN said the banking system remained broadly stable. It noted that the average liquidity ratio stood at 65 per cent, well above the 30 per cent minimum, while the capital adequacy ratio averaged 11.6 per cent, exceeding the 10 per cent requirement.

The central bank attributed the sector’s resilience to strong interest income, improved digital operations and the ongoing bank recapitalisation programme. It said the recapitalisation exercise would strengthen balance sheets and improve banks’ capacity to support the real economy through larger loans.

However, the CBN warned that a sustained rise in bad loans could weaken asset quality and pose risks to financial stability, especially as high interest rates and tough economic conditions strain borrowers.

It urged banks to strengthen credit discipline and fully integrate the Global Standing Instruction framework to improve loan recovery and reduce defaults. Better repayment performance, it said, would also support MSME and retail lending.

The report added that monetary conditions remained tight for most of 2025, with only a slight easing of the policy rate in September after signs of improved price and exchange rate stability.

Looking ahead, the CBN said the sector’s outlook remained positive but stressed that banks must improve risk management, diversify loan portfolios and maintain strong capital buffers to withstand future shocks.

January 2, 2026
Nigeria’s New Tax Laws Explained: Who Pays Less, Who Pays More

Nigeria has rolled out a major overhaul of its tax system, introducing three new laws designed to simplify taxation, widen the tax base and improve fairness. The reforms affect businesses, workers and government agencies, with clear winners and stricter rules for large companies.

At the centre of the changes is the Nigeria Tax Act (NTA), which replaces several older laws with a single framework. The biggest relief is for small businesses. Companies earning ₦50 million or less a year are now exempt from key taxes, including Company Income Tax. This higher threshold aims to ease pressure on micro, small and medium-sized enterprises, many of which struggle with high operating costs.

Large companies, however, face tougher demands. Capital Gains Tax has risen to 30 per cent, matching the corporate income tax rate. Multinational firms must also pay a minimum tax of 15 per cent, even if they report little or no profit locally. The rule targets profit shifting and aligns Nigeria with global tax standards.

For individuals, the system becomes more progressive. Anyone earning ₦800,000 or less a year is now exempt from personal income tax, while the top rate for high earners rises to 25 per cent. The aim is to protect low-income workers and reduce inequality.

The Act also introduces a 4 per cent Development Levy, replacing multiple older charges, and adds rules to tax profits held abroad by Nigerian-owned foreign companies. On VAT, businesses can now reclaim VAT paid on services and fixed assets, while basic food items and medical products remain zero-rated.

How taxes are enforced is covered by the Nigeria Tax Administration Act (NTAA). All taxpayers must now have a Taxpayer Identification Number, and tax filings move fully online. VAT revenue sharing has been adjusted, with states and local governments receiving a larger share. Penalties for non-compliance are stiffer, and tax disputes must be resolved within 90 days.

The third law, the Nigeria Revenue Service (Establishment) Act, upgrades the tax authority, giving it more funding, stronger powers and a digital trade portal to cut delays and leakages.

Together, the reforms aim to make Nigeria’s tax system clearer, fairer and harder to evade.

January 1, 2026
NNPCL cuts petrol price again in Abuja

The Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of petrol for the third time this month.

Checks by correspondents on Thursday showed that NNPCL outlets in Abuja are now selling petrol at ₦835 per litre, down from ₦915. The latest adjustment represents a reduction of ₦80 per litre.

The price cut follows similar moves by other marketers in the capital. MRS, BOVAS and AA Rano had earlier reviewed their pump prices to between ₦739 and ₦865 per litre.

The reductions come after the Dangote Refinery and depot owners lowered their ex-depot prices to a range of ₦699 to ₦800 per litre, easing supply costs across the downstream market.

NNPCL and other filling stations have made several price adjustments this month, with earlier reductions recorded on December 4 and December 10.

Fuel prices have remained volatile in recent weeks as marketers respond to changes in supply costs and competition within the deregulated market.

Motorists in Abuja have welcomed the latest cut, though prices still vary across filling stations depending on location and operator.

December 19, 2025
Nigeria’s new tax rules explained: key questions and answers

As Nigeria prepares to roll out major tax reforms from January 1, 2026, questions remain about who must comply, what changes are coming, and who benefits. Here is a clear guide to the new tax rules, based on official explanations from the Presidential Committee on Fiscal Policy and Tax Reforms.

What is changing with Tax Identification Numbers?

From January 1, 2026, every taxable Nigerian must have a Tax Identification Number to operate a bank account. This requirement is backed by Section 4 of the Nigerian Tax Administration Act.

Taxable persons are those who earn income through business, trade, employment, or other economic activity. Banks will be required to request a tax ID from such individuals and entities.

Students and dependants who do not earn income are exempt.

Will existing bank accounts be restricted?

Accounts owned by taxable persons without a tax ID may face restrictions in the future. However, income earners and businesses that already have a Taxpayer Identification Number do not need to register again.

The policy has existed since the Finance Act of 2020, but the new law provides a clear legal framework for enforcement.

Is Nigeria increasing taxes under the new regime?

No. President Bola Tinubu has said the reforms are not designed to raise the tax burden but to expand the tax base and provide relief to low-income earners.

Nigeria’s tax-to-GDP ratio has risen to 13.5 percent and is expected to increase modestly under the new system, largely through better compliance.

What incentives are included in the new tax laws?

The reforms introduce wide-ranging incentives. These include capital gains tax exemptions for retail investors, pension funds, re-investment, mergers and acquisitions, and real estate investment trusts.

There is also stamp duty exemption on stock transfers, input VAT credits on assets and overheads, and a planned reduction in company income tax from 30 percent to 25 percent.

How do businesses and households benefit?

Businesses will see lower risks through the removal of minimum tax on turnover, harmonised levies, faster refunds, and reduced withholding tax. A Tax Ombud has also been created to protect taxpayers.

Households will benefit from exemptions for low-income earners, reduced rates for middle-income earners, VAT relief on essentials, and incentives for small businesses and investment income.

December 13, 2025
Banks to Request TIN from Taxable Nigerians from 2026

Banks will begin asking taxable Nigerians for a Tax Identification Number from 1 January 2026, as the federal government moves to enforce its new tax administration framework. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed the requirement in an interview shared on his X account.

He said Section 4 of the Nigerian Tax Administration Act makes a tax ID compulsory for anyone who earns income through trade, business, or other economic activity. He stressed that the rule does not apply to students or dependants, who may operate bank accounts without a tax ID.Oyedele explained that the policy first appeared in the 2020 Finance Act, but the NTAA provides the legal foundation for full enforcement. He noted that existing taxpayers and registered businesses with TINs will not need to obtain new IDs.

“A taxable person must register and obtain a tax ID. Banks must request this from anyone who earns income. Individuals without income do not need it,” he said. He added that taxable Nigerians without a tax ID may soon face difficulties operating their accounts.

The clarification follows rising concern that bank accounts without tax IDs could face limits from next year. President Bola Tinubu signed the new tax laws in June 2025, and they take effect on 1 January 2026.

FAQ

Who must provide a Tax Identification Number?

Anyone who earns income through business, trade, or professional activity must have a tax ID under the new law.

Are students required to obtain a tax ID?

No. Students and dependants are exempt and may operate bank accounts without a tax ID.

Will existing TIN holders need to register again?

No. Anyone already issued a TIN will not need a new one.

When will banks start enforcing the requirement?

Banks will enforce the requirement from 1 January 2026.

What happens if a taxable person has no tax ID?

They may face difficulty running their bank accounts once enforcement begins.

December 12, 2025
CBN Lifts Deposit Limit, Raises Weekly Cash Withdrawal Cap to N500,000

The Central Bank of Nigeria has removed the limit on cash deposits and increased the weekly cash withdrawal ceiling to N500,000 for individuals. The new rules, contained in a circular titled “Revised Cash-Related Policies” and signed by Dr Rita Sike, take effect on January 1, 2026.

The CBN said the policy changes were introduced to ease the cost of cash management, strengthen security, and reduce money-laundering risks. It explained that earlier cash limits were designed to push Nigerians toward electronic payments, but changing economic conditions made an update necessary.

Under the revised guidelines, individuals can now deposit any amount without facing extra charges. The weekly withdrawal limit has also been increased to N500,000 for individuals and N5 million for corporate bodies. Withdrawals above these levels will attract fees of 3 percent for individuals and 5 percent for companies. The charges will be shared between the CBN and the customer’s bank.

The special monthly waiver that allowed one-off withdrawals of N5 million for individuals and N10 million for corporates has been scrapped.

ATM withdrawals remain capped at N100,000 per day and N500,000 per week, which is counted as part of the overall weekly limit. Banks must also load all denominations into ATMs. Over-the-counter withdrawal of third-party cheques stays limited to N100,000 and will count toward the weekly threshold.

Banks are expected to file monthly compliance reports to the relevant CBN departments.

The apex bank clarified that accounts belonging to federal, state, and local governments, as well as microfinance and primary mortgage banks, will not be affected by the new withdrawal limits. However, embassies, diplomatic missions, and donor agencies will no longer enjoy the exemptions they previously had.

December 3, 2025