NB247
The Federal Inland Revenue Service (FIRS) has clarified that Nigerians do not need to obtain a separate Tax Identification Number before they can own or operate a bank account.
Aderonke Atoyebi
Instead, it said the new framework integrates seamlessly with existing national registries such as the National Identification Number and Corporate Affairs Commission records
The clarification is coming on the heels of media reports suggesting that from January 2026, every Nigerian would be required to present a TIN to open or maintain a bank account.
The development had generated fears of fresh bureaucratic hurdles for citizens.
The Technical Assistant on Broadcast Media to the Executive Chairman of FIRS, Aderonke Atoyebi, in her explainer post on her official X handle, on Saturday, said that the reports were misleading.
“In recent debates about Nigeria’s tax reforms, a widespread misconception has taken root: that citizens without a Tax Identification Number (TIN) cannot own or operate a bank account,” she said.
“This view, while the reality is that Nigeria’s tax system has evolved to integrate seamlessly with existing national registries, ensuring that every eligible individual or entity is automatically identifiable for tax purposes.
“This article clarifies how the new framework works, drawing from the Federal Inland Revenue Service’s (FIRS) implementation of the National Taxpayer Directory under the Nigeria Tax Administration Act (2025).”
She explained that the TIN is a 13-digit identifier designed to uniquely capture details of taxable persons and entities across Nigeria.
The remaining parts of the statement read:
“What is a Tax ID? The Tax Identification Number (TIN) is a 13-digit unique identifier for all taxable persons and entities in Nigeria. It encodes details such as issuance year, registry source (NIN for individuals, RC for corporates), state of registration, and a cryptographic fragment for security, ending with a check digit.
“The TIN is not a standalone requirement imposed on citizens. Instead, it’s a statutory tool that ensures every taxpayer, whether an individual, a registered business, or an association, can be uniquely verified within the national tax system.
“Tax ID and the National Identity Management Commission, NIMC: For individuals, the TIN is automatically linked to their National Identification Number (NIN) issued by the National Identity Management Commission (NIMC).
“When an individual provides their NIN, such as during bank account opening or Know Your Customer (KYC) processes, the system cross-checks the NIN in the national database. As part of this verification, the TIN is automatically retrieved and attached to the person’s records.
“This means citizens do not need to manually apply for or present a tax ID before opening a bank account. The system handles the integration in real time.
“Exploring the Benefits of Tax ID: Seamless Banking Access: Individuals and businesses can open and operate bank accounts using their NIN or RC number, with the TIN automatically integrated behind the scenes. Fraud Reduction: The system eliminates duplicate or false identities by ensuring every taxpayer is tied to a verifiable registry.
“Regulatory Compliance: Banks and financial institutions can rely on a single, consent-driven source of truth for onboarding, reporting, and KYC compliance. Inclusivity: Beyond companies, the framework extends coverage to associations, professional bodies, and trustees. Global Compatibility: Nigeria’s tax system can securely interact with international systems for trade finance and compliance.
“The misconception that Nigerians can not own or operate a bank account without a tax ID overlooks the integrated design of the new TIN system. By linking TINs to existing foundational identifiers such as the NIN and RC Number, the system ensures automatic compliance without creating unnecessary barriers for citizens.
“In practice, this means a Nigerian walking into a bank with their NIN is already tax-compliant. The bank simply retrieves their TIN as part of its onboarding process. Far from being a hurdle, the TIN framework is a gateway to financial inclusion, regulatory transparency, and global interoperability in Nigeria’s evolving digital economy”, Atoyebi concluded.