Nigeria’s banking sector is once again at the centre of a major policy shift—one that touches directly on identity, taxation, and access to money. With Fidelity Bank Plc announcing that it will restrict accounts not linked to either a Tax Identification Number (TIN) or National Identity Number (NIN) from January 1, 2026, the familiar tension between regulation and inclusion has resurfaced.
The notice, issued to customers on December 15, 2025, aligns with the Nigerian Tax Administration Act 2025, which mandates all income-earning account holders to be identifiable within the tax system. While the directive is regulatory in nature, its implications stretch far beyond compliance forms and database updates.
What the Bank Is Saying
According to Fidelity Bank, customers without a TIN must link their accounts using their NIN. Accounts lacking either requirement may face transaction restrictions, including limited withdrawals and transfers, once the policy takes effect.
The bank urged customers to regularise their records ahead of the deadline, stressing that timely compliance would ensure uninterrupted access to banking services.
Flashback: A Policy Long in the Making
Nigeria’s attempt to tie financial activity to identity and tax records is not new. The Finance Act 2020 introduced similar provisions, but enforcement was largely ineffective. Banks requested documents, but sanctions were rare, and loopholes persisted.
That changed with the enactment of the Nigerian Tax Administration Act 2025, which gives banks explicit legal backing to enforce compliance. The federal government insists this time will be different.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has repeatedly stated that from 2026, banks will be required to demand tax IDs from Nigerians who earn income through business, trade, or other economic activities.
Economist’s View: A Revenue Imperative
Economic analyst Celestine Ukpong describes the policy as a “necessary but sensitive reform,” arguing that Nigeria can no longer afford weak tax compliance.
“Nigeria’s tax-to-GDP ratio remains one of the lowest globally,” Ukpong said. “Linking bank accounts to TINs and NINs is a practical way of widening the tax net, especially in an economy where most transactions already pass through banks.”
However, he cautioned that enforcement without infrastructure could create short-term disruptions.
“The informal sector is large. If registration processes are slow or unclear, you risk excluding people temporarily from the financial system. The policy must move at the same speed as public enlightenment and digital registration,” he added.
Chartered Accountant’s Perspective: Accountability Over Punishment
For Peter Adebayo, FCA, the move is less about punishment and more about transparency.
“This is not a new tax; it is about identification,” Adebayo explained. “The government wants visibility over economic activity, and banks are the most efficient channel for that.”
According to him, the 2025 Act closes gaps left by earlier laws.
“Under the 2020 Finance Act, enforcement was weak because banks lacked strong legal protection. Now, the law clearly mandates them to act. From an accounting and compliance standpoint, this improves data integrity and reduces revenue leakages.”
Adebayo also noted that customers often fear immediate taxation.
“Having a TIN does not automatically mean higher taxes. It simply places you in the system. Actual tax liability still depends on income levels and existing exemptions.”
Reflection: Financial Inclusion at a Crossroads
Despite expert support for the policy’s intent, concerns remain. Millions of Nigerians still struggle to obtain NINs due to registration bottlenecks, while TIN awareness is even lower among micro-entrepreneurs.
Analysts warn that without decentralised registration centres and sustained public education, the policy could unintentionally deepen financial exclusion—at least in the short term.
Yet, from the government’s perspective, the reform is unavoidable. With oil revenues under pressure and public debt rising, Nigeria is turning to data-driven taxation as a survival strategy.
What Customers Should Do Now
Banks advise customers to:
- Confirm their NIN or TIN status
- Link the relevant identification to their accounts early
- Seek clarification from their bank or tax office if unsure
As 2026 approaches, one message is unmistakable: the era of anonymous banking is ending. Fidelity Bank’s announcement may be the clearest signal yet that Nigeria’s financial system is entering a new phase—one where identity, taxation, and banking are inseparably linked.
Fidelity Bank will restrict accounts without NIN or TIN from January 2026. Experts Celestine Ukpong and Peter Adebayo FCA analyse the economic impact, tax compliance drive, and implications for financial inclusion in Nigeria.
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
