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. This view, while popular in some quarters, is inaccurate.
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).
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 is 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.
Tax ID and the Corporate Affairs Commission, CAC: For businesses, the TIN is tied directly to the RC Number issued by the Corporate Affairs Commission (CAC). Likewise, for cooperatives, partnerships, professional bodies, and other legal entities, the TIN is connected to their respective recognised registries.
This linkage ensures that corporate entities can be transparently identified for both tax and compliance purposes. Just as with individuals, banks and regulators do not require extra documentation beyond the foundational registry numbers to confirm tax status.
Benefits of Tax ID include: 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, a system that eliminates duplicate or false identities by ensuring every taxpayer is tied to a verifiable registry; regulatory compliance, whereby banks and financial institutions can rely on a single, consent-driven source of truth for onboarding, reporting, and KYC compliance; inclusivity, which shows how the framework extends coverage to associations, professional bodies, and trustees, beyond companies; and 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 is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service (FIRS).
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