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New Tax ID Law: Nigeria’s Boldest Step Yet to Fix a Broken Tax Culture

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By Princess G. Adebajo-Fraser

Introduction: A Turning Point for Nigeria

Beginning January 1, 2026, Nigerians will face a new reality: no bank account, no business operation, and no access to financial services without a Taxpayer Identification Number (Tax ID or TIN). This reform is anchored in the Nigeria Tax Administration Act, 2025, signed into law by President Bola Ahmed Tinubu in August. It is already being hailed as the most significant financial reform in decades.

The law makes tax compliance a precondition for participating in the financial system. While some citizens may initially view this as burdensome, the truth is that this policy represents a necessary, bold step toward building a sustainable national economy. For the first time, Nigeria is moving away from its dependency on oil revenues toward a citizen-driven taxation culture that is the backbone of prosperous nations.

Why This Law Matters

For decades, Nigeria has had one of the weakest tax compliance records in the world. Out of a population of more than 200 million, only about 10 million are registered taxpayers, while more than 60 million Nigerians operate bank accounts. This mismatch has crippled government revenue and left the nation overly dependent on oil earnings, which are volatile and shrinking in relevance in a climate-conscious global economy.

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The numbers speak for themselves:

Nigeria’s tax-to-GDP ratio is a mere 10%.

Ghana stands at 13%, Kenya at 16%, South Africa at 27%, and the global average is 34%.

In practical terms, this means that while Nigeria has the largest economy in Africa, it collects far less in taxes compared to its peers, leaving public finances in a constant state of crisis. This explains why Nigeria’s budget deficits have widened, borrowing has increased, and infrastructure remains underfunded.

By mandating Tax IDs for all financial transactions, the Federal Government hopes to close this dangerous gap, expand the tax net, and secure revenue to fund critical services such as healthcare, education, and infrastructure.

What the Law Says

The Nigeria Tax Administration Act, 2025 introduces sweeping changes:

1. Individuals: No bank account can be opened or operated without a Tax ID.

2. Businesses: From small informal traders to multinationals, every enterprise must register.

3. Government Agencies (MDAs): Must obtain Tax IDs before entering contracts.

4. Foreign Suppliers: Cannot transact in Nigeria without registering with the new Nigeria Revenue Service (NRS).

5. Financial Institutions: Banks, insurers, and stockbrokers are barred from serving anyone without a Tax ID (Section 8(2)).

The Act also abolishes the Federal Inland Revenue Service (FIRS) and establishes the Nigeria Revenue Service (NRS) as the new tax authority. This institutional restructuring signals government’s determination to enforce compliance and build a modern, digitized tax regime.

Call for Support

“This reform is long overdue. For too long, Nigeria has depended almost entirely on oil revenues while big multinationals operating in our country — companies generating billions — have escaped proper taxation. The new Tax ID law means such companies must now give back fairly to the nation whose resources and infrastructure they benefit from.

Take for example our federal highways, many of which are damaged daily by heavy-duty trucks, including those of major corporations like Dangote. Proper tax contributions from these companies could fund the repair and maintenance of such roads, improve public services, and even cover the budgets of entire states. Multinationals like MTN, DSTV, and large banks, who are generating so much revenue quarterly, ought to pay the correct amount of tax to the government. Those revenues can fund free healthcare and education initiatives for the people, as seen in other countries.

The low-income earners need not fear — they will not be eligible to pay tax, but they will still need to register for transparency. The real target is wealthy corporations and high-net-worth individuals who must now fulfill their civic responsibility to the Nation.

This is how it works in advanced nations like the United Kingdom, where the government relies heavily on tax to provide free healthcare, education, and world-class infrastructure. Why should Nigeria be different?

President Bola Ahmed Tinubu’s administration has taken a bold step to strengthen accountability and reduce dependence on borrowing. As patriots, we must all support this move and demand transparency in its implementation so that Nigeria can finally build a taxation culture that delivers for her people.” – Princess G. Adebajo-Fraser MFR.

Lessons from Around the World

The argument for a strong taxation system is not theoretical; it is proven globally. Nations that thrive do so because they fund their budgets through taxes, not unsustainable borrowing or overreliance on natural resources.

United States: Tax revenues account for around 27% of GDP, funding Social Security, Medicare, infrastructure, and public services.

United Kingdom: About 33% of GDP is raised from taxes, paying for the National Health Service (NHS), free education, and public transport.

Scandinavian countries: In Norway, Denmark, and Sweden, tax-to-GDP ratios exceed 40%, allowing governments to deliver world-class healthcare, free universities, affordable housing, and generous social security.

The common denominator is simple: citizens pay taxes, and governments are held accountable to deliver welfare in return. Nigeria’s weak tax culture has prevented this social contract from taking root.

Implications for Nigerians

Bank Customers

From January 2026, no deposits, withdrawals, or transfers will be possible without a Tax ID. Citizens must register in advance to avoid disruption.

Small Businesses

Informal traders, who make up a huge part of Nigeria’s economy, will face new compliance obligations. However, proper registration may also grant them access to loans, credit, and formal recognition.

Corporate Nigeria

Large corporations will face stricter oversight to prevent tax evasion. Multinationals like MTN, DSTV, and major banks, whose revenues run into trillions of naira, will finally be compelled to pay their fair share.

Foreign Companies

Non-resident suppliers must register with the NRS before doing business in Nigeria, leveling the playing field for local companies.

Risks and Challenges

No reform comes without risks. Nigerians must be aware of the potential pitfalls:

1. Exclusion of the Poor: With 38 million adults unbanked, some may be excluded if the process is not inclusive.

2. Corruption and Bureaucracy: Without strong oversight, corrupt officials may exploit the registration process.

3. Awareness Gap: Millions risk missing the deadline if public education campaigns are not robust.

The success of this reform will depend on whether the NRS can build a transparent, efficient, digital-first system that minimizes human contact, speeds up processing, and ensures fairness.

Building a New Tax Culture

Nigeria must seize this moment to build a new taxation culture where:

Citizens understand tax as a civic duty, not punishment.

Government delivers value in return — better roads, schools, hospitals, and jobs.

Corporations are held accountable to contribute fairly to the economy.

This reform, if well-implemented, will reduce Nigeria’s reliance on borrowing, cut waste, and strengthen national sovereignty. It will also give citizens leverage to demand accountability, since the government will now be directly funded by the people.

What Nigerians Must Do

1. Register early: Do not wait until the last minute.

2. Gather required documents: NIN, BVN, ID, address, and business records (if applicable).

3. Stay informed: Follow NRS guidelines and updates.

4. Think beyond today: Taxes are an investment in collective welfare.

Conclusion: A Bold Step Toward Progress

The New Tax ID Law represents more than a bureaucratic change. It is a test of whether Nigeria can move beyond oil dependency into a sustainable, people-driven economy. It is also a chance to demand that the government fulfill its part of the social contract by delivering visible, measurable improvements in public welfare.

If successful, this reform will mark a turning point in Nigeria’s history — the birth of a true tax culture where every citizen and corporation contributes fairly, and the nation prospers as a result.

The National Patriots, emphasizes:

“This is a bold step and deserves the support of all Nigerians. It is time for every citizen, every company, and every leader to recognize that taxation is the foundation of national progress. With accountability, fairness, and transparency, this reform can deliver a better Nigeria for generations to come.”

•Princess Gloria Adebajo-Fraser MFR, The National Patriots.

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Anambra denies introducing new burial law

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Law Mefor and Governor Soludo
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The Anambra State Government has dismissed reports claiming Governor Charles Chukwuma Soludo signed a “new burial law” imposing restrictions, including a ban on the use of cows and goats during condolence visits, describing them as false and malicious.

The state Commissioner for Information and Value Reformation, Dr. Law Mefor, while clarifying the matter said that no new burial law had been passed by the Soludo administration.

“For the record: No new burial law has been passed by Governor Soludo’s administration. The subsisting Anambra Burial Law is the 2019 law signed by former Governor Willie Obiano,” Mefor said.

The government said the claims circulating on social media and other traditional media outlets were not contained in any section of the 2019 law. It described the assertion that cows and goats are banned at condolence visits as a fabrication intended to mislead the public and incite outrage.

Mefor faulted media organizations for publishing the report without verification, saying journalism demands accuracy, balance, and a duty to confirm claims before publication.

“It is disappointing and irresponsible that established media houses would abandon basic verification and become conduits for viral fake news,” Mefor said.

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The government urged the public to disregard the report and called on media organizations to uphold professional standards and avoid publishing unverified reports that could cause public disaffection.

Residents were advised to rely only on official communication channels of the Anambra State Government for accurate information on government policy.

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‘Some people told Tinubu I wanted to kill him, take over Power’, Says Vice President Shettima

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President Bola Tinubu and Vice President Kashim Shettima
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Vice President Kashim Shettima has revealed that some individuals from Borno State allegedly warned President Bola Tinubu against wearing traditional outfits he gave him during the 2023 presidential campaign, claiming the garments had been used to charm him and could lead to his death.

Shettima made the disclosure on Tuesday while speaking at the public presentation of former Head of State Yakubu Gowon’s autobiography, My Life of Duty and Allegiance, in Abuja, where he represented the President.

According to the Vice President, the incident happened shortly after the inauguration of the Tinubu administration in 2023.

He said he had travelled to Beijing, China, in October 2023 to represent Tinubu at the 3rd Belt and Road Initiative Forum held from October 16 to 18.

Shettima said that upon his return, Tinubu informed him that some people had visited him with claims that the traditional Borno attire Shettima supplied during the campaign had spiritual implications.

“When I came back from China, where I had represented him at the Belt and Road Initiative Conference, he said: ‘Sit down. Your people came to me and said I should stop wearing those dresses you gave me. They said I must have been charmed, and that I am going to die and he will become the president,’” Shettima recounted.

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He said Tinubu dismissed the allegation, noting that the claim did not make sense because both of them were only aspirants at the time the clothes were given to him.

According to Shettima, Tinubu told him: “Their story did not add up, because when you gave me those dresses, I was an aspirant. I wasn’t even the candidate. Neither were you the vice-presidential candidate.”

The Vice President added that Tinubu deliberately continued wearing the outfits for one week to dismiss the allegations.

“For one week, to prove to them that he is not fetish, he wore those dresses,” he said.

Shettima said the episode reflected what he described as growing suspicion within Nigeria’s political environment.

He compared the situation with an earlier account shared by the Sultan of Sokoto about how Gowon used to receive gallons of fura weekly from the Sultan’s family in Sokoto while serving as Head of State at Dodan Barracks in Lagos.

According to Shettima, Gowon accepted the gesture without suspicion, unlike the present climate of mistrust.

“Suspicion smears our relationships, and it ought not to be. We are essentially one people tied to a common destiny,” he said.

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Activities grounded at Federal Neuropsychiatric Hospital Enugu as Workers begin indefinite strike over Same-Scale Promotion

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The aggrieved workers of Federal Neuropsychiatric Hospital Enugu during their peaceful protest on Tuesday
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Activities at the Federal Neuropsychiatric Hospital Enugu were disrupted on Tuesday as workers under the umbrella of the Joint Health Sector Unions (JOHESU) and the National Association of Nigerian Nurses and Midwives (NANNM) commenced an indefinite strike over what they described as “obnoxious same-scale promotion” implemented during the hospital’s 2025 promotion exercise.

The protesting workers, who came out in large numbers, marched from the hospital’s Boulevard area to the main gate, chanting solidarity songs and carrying placards demanding immediate reversal of the promotion exercise which they said amounted to stagnation and demotion of staff.

The industrial action followed the expiration of a 21-day ultimatum issued to the management of the hospital on April 27, 2026, during which the unions demanded the withdrawal of the controversial promotion policy.

Workers of Federal Neuropsychiatric Hospital Enugu on strike

Addressing the workers during the demonstration, the Enugu State Vice Chairman of National Association of Nigerian Nurses and Midwives (NANNM), Comrade Innocent Ejike, assured the aggrieved staff of labour’s support, insisting that injustice against workers would not be allowed to stand.

“As far as we’re concerned, what is wrong will never stand. If they’re working against you, they’re working against all of us and we’ll never allow that to stand,” he said.

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He urged the workers to remain united and disciplined throughout the struggle, stressing that division among workers would weaken their cause.

“There’s no way somebody will go through the rudiments and process of promotion exams and you still keep him in the same position. That is another name for stagnation,” he added.

Also speaking, Chairman Joint Health Sector Union, JOHESU, National Orthopedic Hospital Enugu, Comrade Chukwuemeka Edwin, said the unions were at the hospital to demonstrate solidarity with their members, recalling a similar experience at the National Orthopaedic Hospital Enugu in 2011.

According to him, workers in the orthopaedic hospital resisted attempts to deny them “skipping” during promotions under the Consolidated Health Salary Structure (CONHESS), warning that labour would resist any attempt to revive the policy at FNHE.

“What they did to us then was that people moving from CONHESS 10 to 11 were promoted to the same CONHESS 10, while those moving from 11 to 12 were retained on the same level of 11. We resisted it completely.

“After 15 years of that dark era, we are now seeing the same thing being implemented at the Federal Neuropsychiatric Hospital Enugu. It will never happen,” he declared.

Edwin described the implementation of same-scale promotion as “illegal,” insisting that healthcare promotion remained a “no-go area.”

“The only thing that should call you back from this strike is the withdrawal of that letter,” he told the protesting workers.

Chairman of the National Union of Allied Health Workers and Professionals Enugu State Chapter and past Chairman of Trade Union Congress, TUC, in the state, Asogwa Benjamin, said the unions resorted to strike action after exhausting all avenues for dialogue with management.

“After the 21-day ultimatum, we still gave a grace period of two days. So, we are constrained to take up this last option,” he stated.

Similarly, Acting Chairman of NANNM in the hospital, Comrade Ajiri Okezie, insisted that the workers were only demanding their legitimate rights.

“Promotion is not a privilege but a right. We consulted widely before taking this action. Until you hear from us, don’t come to work,” he said.

The Acting Chairman of JOHESU and Senior Staff Chairman, Comrade Cletus Nweke, also threw his weight behind the strike, describing the workers’ action as justified.

In the April 27 ultimatum jointly signed by leaders of JOHESU affiliates and NANNM in the hospital, the unions accused the management of subjecting workers to “same-scale promotion” during the 2025 exercise.

The unions stated that the exercise was “not promotion but rather stagnation/demotion,” warning that they could no longer guarantee industrial harmony if the decision was not reversed.

The workers anchored part of their demands on a 2017 circular issued by the Federal Ministry of Health following a memorandum of terms of settlement reached with JOHESU after a nationwide strike.

In the October 3, 2017 document signed on behalf of the Minister by Dr. W. D. Balami, Head of Department of Hospital Services, the ministry expressly directed federal health institutions that “there should be no same-scale promotion in accordance with the Public Service Rule.”

The document also directed hospitals to pay arrears of “skipping” and other allowances owed to health workers.

Union leaders at the protest argued that the current promotion exercise at FNHE violated the 2017 agreement and contravened established public service rules guiding promotions in the health sector.

As of the time of filing this report, the management of the hospital had yet to officially respond to the allegations and the ongoing strike action.

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