The Federal Inland Revenue Service (FIRS) has announced that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) will now serve as a Tax Identification Number (Tax ID) for Nigerians. This development comes as the Nigerian government prepares to implement the Nigeria Tax Administration Act (NTAA) in January 2026, which requires the use of Tax IDs for certain transactions.
As of October 2025, the NIMC had issued NINs to approximately 123.9 million Nigerians. The FIRS has stated that for individuals, their NIN will automatically serve as their Tax ID, while registered businesses will use their Corporate Affairs Commission (CAC) registration number as their Tax ID. This new system aims to simplify identification, reduce duplication, and prevent tax evasion.
The NTAA mandates the use of Tax IDs for taxable individuals, defined as those who earn income through trade or economic activity. However, individuals who do not earn income, such as students and dependents, are not required to obtain a Tax ID. According to the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, anyone operating a bank account for businesses or a corporate account since 2020 already has a Tax Identification Number.
The new tax laws have sparked concerns about the requirement for a Tax ID for bank account ownership. However, Oyedele has clarified that the requirement is not new and has existed since the Finance Act 2019. The FIRS has emphasized that the new Tax ID system will ensure fairness and simplify tax administration.
The implementation of the NTAA is expected to strengthen Nigeria’s tax system and increase revenue collection. With the use of NINs as Tax IDs, the government aims to reduce tax evasion and ensure that all taxable individuals contribute to the country’s revenue. As the January 2026 deadline approaches, Nigerians can expect further guidance on the new tax laws and their implications.
