FG Clarifies Tax Identification Number Policy: Ordinary Nigerians Not Affected
By Joseph Iyaji | Akahi News
The Federal Government has moved to allay public concerns following widespread reports suggesting that all Nigerians must obtain a Tax Identification Number (Tax ID) before opening or maintaining a bank account. Clarifying the matter, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, explained that the new requirement applies only to taxable individuals and businesses, and not to ordinary citizens without taxable income.
In a statement shared on his official X handle, Oyedele stressed that the recently enacted Nigeria Tax Administration Act (NTAA) consolidates existing provisions rather than introducing new obligations for low-income Nigerians.
“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 stated. Read more here.
The NTAA builds on the Finance Act of 2019, which mandated businesses to present a Tax Identification Number (TIN) when opening accounts. Under the new law, multiple identifiers are harmonised into a single Tax ID to reduce duplication and close potential loopholes. For individuals, their National Identification Number (NIN) will automatically serve as the Tax ID, while companies’ Corporate Affairs Commission (CAC) registration numbers will serve the same purpose. Existing TINs remain valid, and new applicants can register online or at tax offices free of charge.
Oyedele clarified that the Tax ID is not a physical card, but a unique number linked to the individual’s or company’s identity. He warned Nigerians against touts or unofficial agents claiming to issue Tax ID cards.
The NTAA also covers non-resident companies operating in Nigeria, as well as government-owned enterprises and agencies. Nigerians in the diaspora can obtain a Tax ID using their NIN for banking or investment purposes.
From January 1, 2026, taxable persons who fail to register may face restrictions in operating bank accounts, insurance policies, pension accounts, or investment portfolios. Penalties for non-compliance will also apply under the law.
Oyedele emphasised that the reform aims to simplify identification, reduce tax evasion, and make the system fairer. “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 that those who earn taxable income contribute their fair share while low-income citizens remain protected,” he said.
The Presidential Fiscal Policy and Tax Reforms Committee advised citizens to rely strictly on official government channels for updates to avoid misinformation or exploitation. The Federal Government hopes that the new system will improve compliance, enhance transparency, and protect citizens outside the tax net from unnecessary bureaucracy.
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