The Federal Inland Revenue Service (FIRS) has announced that Nigeria’s National Identification Number (NIN) will automatically serve as the Tax Identification Number (TIN) for individual taxpayers, while Corporate Affairs Commission (CAC) registration numbers will now function as tax IDs for registered businesses.

The clarification was made through a public awareness campaign on Nigeria’s new tax laws shared by the Service on its official X (formerly Twitter) account on Monday.

According to the FIRS, individuals will no longer be required to apply separately for a Tax Identification Number, as their existing NIN—issued by the National Identity Management Commission (NIMC)—now fulfils that role under the new tax framework.

Similarly, registered businesses will not need a separate tax ID, as their CAC registration (RC) numbers will automatically serve as their official tax identifiers.

The announcement comes amid growing public concerns over provisions in Nigeria’s revised tax laws that require a Tax ID for certain financial transactions, including the ownership and operation of bank accounts.

Explaining the policy, the FIRS stated that the Nigeria Tax Administration Act (NTAA)—scheduled to take effect from January 2026—mandates the use of a Tax ID for specific transactions. However, it stressed that the requirement is not new, noting that it has existed since the Finance Act of 2019 but has now been strengthened.

“The Tax ID unifies all Tax Identification Numbers previously issued by the FIRS and State Internal Revenue Services into a single identifier,” the Service said.

“For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used. You do not need a physical card, as the Tax ID is a unique number linked directly to your identity.”

The FIRS added that the new system is designed to simplify identification, reduce duplication, close loopholes that enable tax evasion, and promote fairness by ensuring that all eligible taxpayers contribute appropriately.

The agency urged Nigerians to disregard misinformation surrounding the reform, assuring the public that the revised tax framework is aimed at improving efficiency, transparency, and compliance in tax administration.

Meanwhile, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, had earlier disclosed that banks will be required to request a TIN from all taxable Nigerians as part of the federal government’s tax administration framework, effective January 1, 2026.

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The National Orientation Agency (NOA) has dispelled widespread fears that the federal government will directly deduct taxes from Nigerians’ bank accounts when new tax laws take effect in January 2026. In its latest weekly briefing, the agency addressed misconceptions surrounding the Nigerian Tax Act, 2025, and the Nigerian Tax Administration Act (NTAA), emphasizing that claims of automatic deductions are unfounded and stem from misinformation.

“Taxes will not be automatically deducted from the bank accounts of Nigerians,” the NOA stated unequivocally, seeking to reassure the public amid growing anxiety.

Clarifying the provisions of the NTAA, the agency explained that Section 29 mandates banks and financial institutions to submit quarterly reports on customers whose cumulative monthly transactions exceed N25 million for individuals and N100 million for corporate entities. This measure aims solely to detect potential tax evasion and does not authorize any direct withdrawal of funds by the government.

“The reporting requirement is a tool for monitoring and ensuring tax compliance, not a mechanism for automatic deductions,” the NOA added.

Highlighting the limited impact of this provision, the agency noted that only about five percent of bank customers maintain balances exceeding N500,000. Consequently, over 90 percent of Nigerians are unlikely to be affected by the reporting mandate.

The NOA also underscored that the new tax reforms are designed to alleviate financial pressure on low-income earners and small businesses. Individuals with annual incomes of N800,000 or less will be exempt from personal income tax, while businesses generating annual turnovers below N100 million will be relieved from profit tax obligations.

“These reforms seek to broaden the tax base, enhance compliance, and reduce evasion without imposing additional burdens on the majority of Nigerians,” the agency stated.

Furthermore, the agency anticipates that the revised laws will increase transparency in financial reporting and bring more eligible taxpayers into the formal tax system, strengthening Nigeria’s fiscal foundation.

As the January 2026 implementation date approaches, the NOA’s clarifications aim to build public confidence in the government’s commitment to fair and transparent taxation.

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