Fed Govt clears air over confusion regarding Tax ID number and Bank accounts

Fed Govt clears air over confusion regarding Tax ID number and Bank accounts

The Federal Government has taken steps to ease public concerns following reports that every Nigerian would be required to obtain a Tax Identification Number (Tax ID) to open or maintain a bank account.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, clarified that the requirement only applies to individuals and businesses with taxable income — not to ordinary citizens who do not fall within the tax bracket.

In a statement shared on his official X account, Oyedele explained that the newly enacted Nigeria Tax Administration Act (NTAA) merely consolidates existing regulations and does not place any new burden on low-income Nigerians.

“Banks and financial institutions are required to request a Tax ID from taxable persons. However, individuals who do not earn income and are not taxable are not required to obtain one,” he stated.

The NTAA builds on provisions introduced in the Finance Act of 2019, which mandated businesses to provide a Tax Identification Number (TIN) when opening bank accounts.

According to Oyedele, the new law streamlines the system by replacing multiple identifiers with a single, unified Tax ID aimed at eliminating duplication and loopholes.

Under the NTAA, an individual’s National Identification Number (NIN) or a company’s Corporate Affairs Commission (CAC) registration number will now serve as their Tax ID. Existing TINs remain valid, and new Tax IDs can be obtained either online or at designated tax offices at no cost.

“The Tax ID is not a physical card but a unique number linked to your identity. Nigerians should avoid touts or unofficial agents claiming to issue Tax ID cards,” he cautioned.

The law also extends to non-resident companies operating in Nigeria, as well as government-owned businesses and agencies. Nigerians living abroad can also use their NIN to obtain a Tax ID for banking or investment purposes.

Beginning January 1, 2026, taxable individuals who fail to register may face restrictions on accessing financial services such as bank accounts, insurance, pensions, or investment platforms. Non-compliance will also attract penalties under the NTAA.

Oyedele underscored that the reforms are intended to simplify identification, curb tax evasion, and ensure a fairer system.

“For most ordinary Nigerians, there is no extra burden because their NIN or CAC number will serve as their Tax ID.

The goal is to ensure that those who earn taxable income contribute their fair share while low-income citizens remain protected,” he said.

The Committee urged the public to rely only on official government platforms for accurate information about the tax reforms, warning against misinformation and fraudulent intermediaries.

The Federal Government says the streamlined system is designed to boost compliance and transparency, while shielding non-taxable citizens from unnecessary red tape.