Nigerian Fidelity bank cites new tax law, warns customers to link TIN or NIN before January 1, 2026 or face transaction limits nationwide across all branches.
Fidelity Bank Plc has warned customers that bank accounts not linked to a Tax Identification Number or National Identity Number will face transaction restrictions starting January 1, 2026, as Nigeria moves to tighten enforcement of tax compliance laws.
The bank disclosed the plan in a notification sent to customers this week, citing requirements under the Nigerian Tax Administration Act (NTAA) 2025. The law mandates that all bank accounts belonging to taxable individuals must be linked to a valid tax ID, while customers without one are required to provide their national identity number.
According to the notice, accounts that fail to meet the requirement may be restricted from carrying out transactions once the law takes effect.
“The Nigerian Tax Administration Act 2025 stipulates that all bank accounts must be linked to a tax ID or National Identity Number for customers without a tax ID,” the bank said. “Accounts without this information may be restricted from transacting from January 1, 2026.”
Fidelity urged customers to update their records promptly to avoid service disruptions, stressing that the measure is regulatory rather than discretionary.
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The announcement follows a broader push by the Nigerian government to strengthen tax collection and widen the tax base in Africa’s largest economy. Authorities have set 2026 as the start date for full enforcement, giving banks and customers time to comply.
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, recently confirmed the policy timeline in a public interview. He said the requirement is anchored in Section 4 of the NTAA, which legally obliges all taxable persons to register for and obtain a tax identification number.
“A taxable person is anyone who earns income from trade, business, or other economic activity,” Oyedele said. “Banks are therefore required to request a tax ID from such individuals.”
Oyedele noted that the requirement is not entirely new. A similar provision was introduced under Nigeria’s 2020 Finance Act but was weakly enforced. He said the new law provides a stronger legal framework to ensure uniform compliance across the banking sector.
For Nigeria’s financial system, the move is expected to deepen transparency and improve tax administration, though it may also affect millions of account holders who have yet to formalize their tax status.
Fidelity Bank is among the first major lenders to issue a clear public warning ahead of the deadline, signaling that banks are preparing to align internal systems with the new rules.
Industry analysts say similar notices are likely from other banks in the coming months as the 2026 enforcement date approaches, making compliance a key issue for individuals and small businesses nationwide.
