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 legislation, titled “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters,” aims to enhance tax compliance and improve the country’s revenue collection process.

Dated October 4, 2024, and obtained from the National Assembly, the bill stipulates that financial service providers must ensure clients furnish a TIN as a prerequisite for accessing their services. This move is part of broader efforts to ensure that all individuals and entities participating in financial activities are properly registered for tax purposes.

The bill also requires any non-resident person supplying taxable goods or services to individuals in Nigeria or deriving income from the country to register for tax purposes and obtain a TIN. However, non-resident individuals who earn only passive income from investments in Nigeria are exempt from this requirement but must provide relevant information as prescribed by the tax authority.

Additionally, the proposed legislation empowers tax authorities to automatically register and issue a TIN to individuals who fail to apply for one when required. In such instances, the tax authority must promptly notify the individual about their registration and the issuance of the TIN.

Non-compliance with these requirements may result in administrative penalties. A taxable person who fails to register for tax will face a penalty of ₦50,000 for the first month of non-compliance and ₦25,000 for each subsequent month.

The introduction of this bill aligns with ongoing efforts by the Nigerian government to bolster tax compliance and increase revenue generation. It follows recent tax reform initiatives, including submissions of tax bills to the National Assembly by President Bola Tinubu.

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