The Federal Inland Revenue Service (FIRS) has announced that Nigeria’s National Identification Number (NIN), issued by the National Identity Management Commission (NIMC), will now automatically serve as a Tax Identification Number (Tax ID) for individuals under the country’s evolving tax administration framework.
The clarification follows growing public concern over provisions in Nigeria’s tax laws that require a Tax ID for certain financial and economic activities, including bank account operations. In response, the FIRS said the new arrangement is designed to simplify compliance and eliminate confusion surrounding tax identification requirements.
According to figures released by NIMC, about 123.9 million Nigerians had been issued a NIN as of October 2025, meaning a significant portion of the population is already covered under the new system.
In a public awareness campaign posted on X on Monday, the FIRS explained that the reform also applies to businesses. Under the updated tax framework, the Registration Certificate (RC) number issued by the Corporate Affairs Commission (CAC) will automatically serve as the Tax ID for registered companies.
The development is tied to the Nigeria Tax Administration Act (NTAA), which is scheduled to take effect from January 2026. The Act mandates the use of a Tax ID for specified transactions. However, the FIRS stressed that the requirement is not entirely new, noting that similar provisions have existed since the Finance Act of 2019 but have now been strengthened and streamlined under the NTAA.
The Service said the unified Tax ID system is aimed at improving efficiency in tax administration by reducing duplication, closing loopholes that enable tax evasion, and promoting fairness by ensuring that all individuals and entities earning taxable income contribute appropriately.
“The Tax ID unifies all Tax Identification Numbers previously issued by the FIRS and state internal revenue services into a single identifier,” the agency said. “For individuals, the NIN automatically serves as the Tax ID, while for registered companies, the CAC RC number is used. There is no need for a physical card, as the Tax ID is a unique number directly linked to a taxpayer’s identity.”
Providing further clarification on the new tax laws ahead of their January 1, 2026 implementation, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, dismissed claims that all bank accounts must be linked to a Tax Identification Number before the commencement date.
Oyedele explained that Section 4 of the NTAA requires only taxable persons to obtain a Tax ID, defining a taxable person as anyone who earns income through trade or other economic activities. He added that individuals without taxable income—such as students and dependents—are not required to obtain a Tax ID.
He also noted that businesses and corporate entities operating bank accounts have effectively been within the tax identification system for years, pointing out that corporate accounts opened since 2020 already require a Tax Identification Number.
The clarifications, authorities say, are intended to reassure the public and ensure a smooth transition as Nigeria moves toward a more integrated and transparent tax administration system.
