See FG’s new bill that mandates tax ID for opening bank account, others

The FG has introduced a new bill that could drastically reshape the financial services sector, requiring all individuals involved in banking, insurance and stockbroking to provide a tax identification number (TIN) before opening or operating any account.

Submitted to the National Assembly, the proposed legislation aims to improve tax compliance and make the process of collecting revenue more efficient throughout Nigeria. By addressing the various challenges that currently hinder effective taxation, this bill intends to create a more organized and systematic approach to tax collection, which is crucial for the country’s financial health and development.

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The bill, which is officially dated 4 October, carries the title “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters.” This long title reflects the comprehensive nature of the legislation, as it not only discusses assessment and collection but also includes provisions for how the revenues will be accounted for at all levels of government. The aim is to ensure that tax authorities have clear guidelines on their roles and responsibilities while also emphasizing transparency and accountability in the management of public funds.

“A person engaged in banking, insurance, stockbroking, or other financial services in Nigeria shall make the provision of a tax ID a precondition for opening a new account or operating an existing account,” the document reads.