In a significant move to modernize Nigeria’s revenue collection system, the Federal Inland Revenue Service (FIRS) has declared that every Nigerian with a National Identification Number (NIN) now automatically possesses a Tax Identification Number (TIN). This announcement, shared via a public sensitization video by the FIRS and amplified by Presidency officials, aims to simplify tax compliance and eliminate the need for physical tax ID cards.
As Nigeria moves closer to the full implementation of the Nigeria Tax Administration Act (NTAA) in January 2026, this integration marks a major milestone in the country’s digital identity journey. Here is everything you need to know about the new FIRS tax ID system and how it affects you.
Understanding the NIN as an Automatic Tax ID
The FIRS has clarified that for individual Nigerians, the NIN issued by the National Identity Management Commission (NIMC) now serves as a universal identifier for tax purposes. This means that if you have a NIN, you already have a Tax ID. You do not need to apply for a separate number or visit an FIRS office to get a physical card.
For businesses, the process is equally streamlined. The Corporate Affairs Commission (CAC) RC number—the registration number issued when a company is incorporated—automatically becomes the company’s Tax ID.
Why the FIRS is Unifying Identity Systems
The primary goal of this unification is to create a seamless, efficient, and fair tax ecosystem. According to the FIRS, the new system provides several key benefits:
- Eliminates Duplication: By using existing IDs (NIN and CAC), the government removes the burden of managing multiple identification numbers.
- Closes Tax Loopholes: The integrated system makes it easier to track economic activities and identify tax evasion.
- Enhances Fairness: It ensures that every individual earning a taxable income contributes their fair share to national development.
- Simplifies Banking: With over 123.9 million Nigerians already issued a NIN as of late 2025, this development removes the “tedious process” of acquiring a separate TIN to maintain or open bank accounts.
Tax IDs and Bank Accounts: What You Should Know
There has been widespread concern regarding the provision of the new tax laws that mandates a Tax ID for bank account ownership. However, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has offered some vital clarifications:
- Taxable Persons Only: The requirement to obtain and use a Tax ID primarily applies to “taxable persons”—those earning income through trade or economic activity.
- Exemptions for Non-Earners: Students, dependents, and individuals without an income are not required to have a Tax ID for their personal accounts.
- No New Process for Existing Accounts: Since the NIN already serves as the ID, most Nigerians are already compliant without even realizing it.
The Role of the Nigeria Tax Administration Act (NTAA)
While the use of NIN as a tax identifier was introduced in the Finance Act 2019, the NTAA (effective January 2026) significantly strengthens these requirements. The law mandates the use of these unified IDs for specific high-value transactions and corporate operations.
Conclusion: Embracing a Digital Nigeria
The transition to an automatic Tax ID system is a win for both the government and the citizen. It reduces bureaucracy, speeds up banking processes, and ensures that the tax net is wide enough to capture those who should be paying, while protecting those who shouldn’t. As we approach 2026, Nigerians are encouraged to ensure their NIN details are up-to-date and correctly linked to their financial records.
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