‘Why Nigerians without TIN can still own, operate bank accounts’

Contrary to widespread belief, Nigerians without a Tax Identification Number (TIN) can still open and operate bank accounts, according to the Federal Inland Revenue Service (FIRS). The agency clarified that banks and other financial institutions are permitted to onboard individuals without a TIN, provided certain verification procedures are met.

Recent debates around Nigeria’s new tax reforms have sparked confusion, with many citizens assuming that owning a bank account now requires a TIN. However, the FIRS explained that under the Nigeria Tax Administration Act (2025), the tax system has been integrated with national identity databases to ensure automatic tax compliance for eligible citizens.

The TIN, a 13-digit identifier for all taxable individuals and entities, is automatically linked to the National Identification Number (NIN) for individuals and the RC Number for registered companies. This means that when a person opens a bank account using their NIN, the system cross-references the information in real time, retrieves the TIN, and attaches it to their financial records.

In essence, Nigerians no longer need to manually apply for or present a TIN before opening a bank account. The process is seamless, ensuring inclusion while maintaining tax transparency.

According to an FIRS Explainer document, the integrated framework offers multiple benefits: Individuals can operate accounts using their NIN, while the TIN functions in the background, the linkage of identifiers minimizes duplication and false identities; banks rely on unified, verified databases for Know Your Customer (KYC) processes;Associations, professional bodies, and trustees are also covered under the system.

Also, in a podcast, Mrs. Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the FIRS Executive Chairman, said the new tax framework is designed to “eradicate multiple taxation and protect low-income earners.”

 She added that individuals earning N1.2 million or less annually are exempt from tax, while essential goods and services remain VAT-free.

She emphasised that the reform will enhance transparency, attract investment, and compel better governance through improved revenue accountability.