NASS: New bill gives fresh conditions to open, operate bank accounts

NASS: New bill gives fresh conditions to open, operate bank accounts

A new bill has been proposed in Nigeria that will make it mandatory for individuals involved in banking, insurance, stock-broking, and other financial services to provide a Tax Identification Number (TIN) before opening a new account or operating an existing one.

The proposed legislation, titled “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,” seeks to boost tax compliance and improve the country’s revenue collection efforts.

The bill, obtained from the National Assembly and dated October 4, 2024, outlines that individuals engaged in financial services in Nigeria must supply a TIN as a precondition for accessing banking and financial services.

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In addition, the bill specifies that non-resident individuals supplying taxable goods or services or earning income from Nigeria must register for tax purposes and obtain a TIN. However, non-residents deriving only passive income from investments will not need to register but must provide relevant information to tax authorities.

The bill also grants tax authorities the power to automatically register individuals for a TIN if they fail to do so. In such cases, the tax authority will notify the individual about their registration and the issuance of their tax ID.

Failure to comply with the new requirements could lead to penalties, including a fine of N50,000 in the first month of non-compliance, followed by N25,000 for each additional month of delay.

NASS: New bill gives fresh conditions to open, operate bank accounts