The Federal Government has issued fresh clarification on whether Nigerians must obtain a Tax Identification Number before operating or maintaining a bank account, following rising public concern about the implementation of the Nigeria Tax Administration Act NTAA. Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, explained that the requirement depends on whether an individual qualifies as a taxable person under the law.
Oyedele stated that a Tax ID is required only for people who earn income through trade, business, or other economic activities. Citing Section 4 of the NTAA, he said, “Individuals who do not earn income and are not taxable persons are not required to obtain a Tax ID.” According to him, banks and other financial institutions are mandated to request a Tax ID from taxable persons when opening or maintaining accounts. This means students, dependents, and people without income can continue using their bank accounts without needing a Tax ID.
He emphasised that the rule is not new, noting that the requirement dates back to the Finance Act of 2019, which amended Section 49 of the Personal Income Tax Act. Since January 2020, individuals opening business accounts have typically had to provide a TIN. “This is not a brand-new law,” Oyedele said. “The NTAA simply harmonises and strengthens existing provisions.”
Part of the reform includes replacing multiple identification numbers previously issued by agencies such as FIRS, JTB, and State IRS offices with a unified Tax ID. Under the updated framework, an individual’s NIN or a company’s CAC registration number automatically becomes their Tax ID. Oyedele explained that this move aims to reduce duplication and make compliance easier by linking tax records to national identity systems.
For people who already have a TIN, Oyedele confirmed that no new registration is required. Their existing TIN automatically becomes their Tax ID. He also stressed that Nigerians do not need a physical card to obtain a Tax ID. “A Tax ID is simply a unique number,” he said, adding that it can be checked or obtained online through the JTB portal. He warned citizens, “Do not pay touts or unofficial agents for Tax ID services.”
Businesses are also covered under the reforms. Unregistered small businesses may use a personal Tax ID, while registered companies, NGOs, and incorporated trustees receive a Tax ID automatically when they register with the CAC. Older businesses that were registered before TIN usage became standard were advised to update their records or apply online using their CAC documents.
Addressing Nigerians in the diaspora, Oyedele noted that the requirement applies only to accounts tied to income or business activity in Nigeria. Such individuals can obtain a Tax ID using their NIN through the JTB portal. He added that foreign companies supplying goods or services in Nigeria must obtain a Tax ID, while those earning only passive income such as dividends or rent may not need to register unless other tax obligations arise.
Oyedele also stated that government agencies at the federal, state, and local levels are not exempt. Section 5 of the NTAA requires all ministries, departments, agencies, and government-owned enterprises to register for and obtain a Tax ID.
Speaking on concerns about enforcement from January 1, 2026, he explained that most taxable persons already possess TINs or Tax IDs. While those without may face difficulties operating bank, pension, insurance, or investment accounts, he assured Nigerians that access to accounts will not suddenly be blocked. The harmonisation with NIN and CAC numbers is designed to support smooth compliance.
On rumours claiming the government plans to withdraw money from private accounts, Oyedele dismissed the speculation. “No such plan exists,” he said. He explained that although tax authorities may enforce payment of established tax debts through legal processes, including court orders, this applies only in confirmed cases of unpaid liabilities and is rarely used.
According to Oyedele, the reforms aim to build a fair and transparent tax system that protects low-income Nigerians while ensuring that everyone who earns taxable income contributes fairly. By using NIN and CAC numbers as Tax IDs, he said, “we are simplifying the system and closing loopholes without placing unnecessary burdens on citizens.”
For official guidance and updates, he encouraged Nigerians to visit the JTB portal at tin.jtb.gov.ng or follow announcements from the Presidential Fiscal Policy and Tax Reforms Committee.
