The Federal Inland Revenue Service (FIRS) of Nigeria has clarified the role of Tax Identification Numbers (TINs) in opening and operating bank accounts. Contrary to widespread belief, Nigerians do not require a separate TIN to access banking services. The FIRS has integrated the TIN framework with existing national registries, making it possible for eligible individuals and entities to be automatically identified for tax purposes.

The new National Taxpayer Directory, introduced by the Nigeria Tax Administration Act of 2025, links individuals’ TINs to their National Identification Numbers (NINs), while corporate entities’ TINs are tied to their registration numbers with the Corporate Affairs Commission (CAC). This system eliminates the need for manual TIN applications or presentations during financial transactions. When an individual provides their NIN, such as during account opening or Know Your Customer (KYC) processes, the system cross-checks the NIN in the national database and retrieves the associated TIN.

For businesses, the TIN is automatically tied to their CAC-issued RC Number or other recognized registries covering cooperatives, partnerships, and professional bodies. The FIRS believes this new framework offers multiple benefits, including seamless banking access, reduced fraud, and regulatory compliance. It also promotes inclusivity for associations and trustees, as well as global compatibility with international financial systems.

According to Arabinrin Aderonke-Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of FIRS, the system is designed to ensure automatic compliance without creating unnecessary barriers. “In practice, a Nigerian walking into a bank with their NIN is already tax-compliant,” she explained. The bank simply retrieves their TIN as part of the onboarding process. This development is expected to enhance financial inclusion, regulatory transparency, and global interoperability in Nigeria’s digital economy.

The clarification by the FIRS is significant, as it addresses a common misconception about the requirements for banking services in Nigeria. With the automated TIN system in place, individuals and businesses can expect a more streamlined and efficient experience when interacting with financial institutions. As Nigeria continues to develop its digital economy, this integration of tax and banking systems is likely to play a key role in promoting economic growth and reducing regulatory hurdles.