Taxation
Olamilekan Abayomi
The Federal Government has clarified that ordinary Nigerians without taxable income don’t need a Tax Identification Number (Tax ID) to open or maintain bank accounts. Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, explained that the new policy under the Nigeria Tax Administration Act (NTAA) applies only to taxable persons and businesses.
According to Oyedele, the NTAA builds on the Finance Act of 2019, which first introduced the requirement for businesses to present a Tax Identification Number (TIN) when opening accounts. The NTAA now replaces multiple identifiers with a single, harmonized Tax ID to reduce duplication and loopholes. Individuals’ National Identification Number (NIN) and companies’ Corporate Affairs Commission (CAC) registration numbers will automatically serve as their Tax IDs.
Existing TINs remain valid, while new applicants can obtain theirs online or at tax offices for free. Oyedele emphasized that the Tax ID is not a physical card but a unique number linked to an individual’s identity. He cautioned Nigerians against touts or unofficial agents claiming to issue Tax ID cards.
The law also covers non-resident companies doing business in Nigeria, as well as government-owned enterprises and agencies. Nigerians in the diaspora may also obtain a Tax ID using their NIN for banking or investment purposes. From January 1, 2026, taxable persons who fail to register may find themselves unable to operate bank accounts, insurance policies, pension accounts, or investment portfolios. Penalties will also apply under the NTAA for non-compliance.
Oyedele emphasized 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.
The Presidential Fiscal Policy and Tax Reforms Committee advised citizens to rely strictly on official government channels for updates on the new tax laws to avoid misinformation and exploitation. The Federal Government hopes the new system will improve compliance and transparency, while protecting citizens outside the tax net from unnecessary bureaucracy.
