President Bola Ahmed Tinubu
PicNews
The Tinubu government has defended its policy requiring Nigerian business owners to present a Tax Identification Number (TIN) for bank operations, citing existing tax laws as the basis for the mandate. According to the Fiscal Reforms of Nigeria, this policy isn’t new but rather a reinforcement of laws that have been in place since the Finance Act of 2019. The government insists that the policy aims to broaden Nigeria’s tax base, enhance revenue generation, and simplify tax compliance.
The Nigeria Tax Administration Act (NTAA) and the Finance Act of 2019 mandate the use of Tax Identification Numbers (Tax ID) for certain transactions, including banking activities. Businesses and individuals with taxable income are required to obtain a TIN, which will be used to track their tax obligations and payments. The policy stems from the Nigeria Tax Administration Act (NTAA) and the Finance Act of 2019, which amended Section 49 of the Personal Income Tax Act.
From January 1, 2026, banks and financial institutions will require a valid Tax ID for both new and existing customers. Individuals without taxable income are not required to obtain a TIN; their National Identification Number (NIN) or Corporate Affairs Commission (CAC) registration number will automatically serve as their Tax ID for those who already have them.
The government emphasizes that the registration process will be digital, eliminating the need for queues and red tape. However, civil society groups have expressed concerns that the policy could marginalize low-income earners and petty traders who rely on informal transactions. They argue that the government needs to intensify public awareness campaigns and introduce safeguards to protect these groups.
The policy has sparked heated debates among Nigerians, with some arguing that while the law may not be new, enforcement mechanisms could lead to exclusion of vulnerable citizens and further complicate Nigeria’s already low financial inclusion rates. Despite these concerns, the government remains committed to implementing the policy, believing it will improve tax compliance and transparency.
