- Only taxable persons need Tax Identification Numbers, says Oyedele
The Federal Government has moved to douse public anxiety over reports that all Nigerians must obtain a Tax Identification Number (Tax ID) before they can open or operate bank accounts. Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, clarified that the new Nigeria Tax Administration Act (NTAA) only requires taxable persons — those engaged in trade, business, or income-generating activities — to register with the tax authority and obtain a Tax ID.
“Banks and financial institutions are required to request a Tax ID from taxable persons. However, individuals who do not earn income and are not taxable are not required to obtain one,” Oyedele said in a post on his official X handle. He explained that the requirement is not entirely new. “Since January 2020, the Finance Act of 2019 has made TIN mandatory for opening business accounts. What the NTAA does is harmonise the system, replacing multiple identifiers with a single Tax ID.” For ease of compliance, individuals’ National Identification Number (NIN) and companies’ Corporate Affairs Commission (CAC) registration number will serve as their Tax ID, eliminating duplication.
Existing TINs remain valid, while new applicants can obtain their Tax ID free of charge either online or at designated tax offices. Oyedele stressed that the Tax ID is not a physical card. “It is simply a unique number linked to your identity. Nigerians should avoid touts or unofficial agents claiming to issue Tax ID cards,” he warned. The NTAA also extends its reach to non-resident companies operating in Nigeria, as well as government-owned enterprises and agencies. Nigerians in the diaspora can also use their NIN to obtain a Tax ID for investment or banking purposes locally.
Under the law, effective January 1, 2026, taxable persons who fail to register may be unable to operate bank, insurance, pension, or investment accounts and may face penalties under the NTAA. Oyedele emphasised that the reform is aimed at fairness and efficiency. “For most ordinary Nigerians, there is no extra burden because their NIN or CAC number will serve as their Tax ID. The goal is to ensure those who earn taxable income contribute their fair share, while low-income citizens remain protected.” The committee urged Nigerians to rely on official government channels for updates and guidance on the new tax laws to avoid misinformation.
