NIN now serves as tax ID for Nigerians under new tax regime — FIRS, experts clarify

The Federal Inland Revenue Service (FIRS) has announced that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) now automatically serves as the Tax Identification Number (Tax ID) for individual Nigerians, as part of ongoing reforms under the new tax laws.

The clarification was made in a public awareness campaign on the Nigeria Tax Administration Act (NTAA) shared by the FIRS on its official X (formerly Twitter) handle on Monday.

The Service also disclosed that for registered businesses, the Corporate Affairs Commission (CAC) registration number (RC number) will automatically function as their Tax ID under the new tax system.

The announcement comes amid widespread public concern over provisions of the new tax laws, particularly reports suggesting that a Tax ID would become mandatory for operating bank accounts from January 2026.

According to the FIRS, the NTAA, which is scheduled to take effect in January 2026, mandates the use of a Tax ID for certain financial and economic transactions.

However, the agency stressed that the requirement is not new, noting that it has existed since the Finance Act of 2019 but has now been strengthened and streamlined under the new law.

“The Tax ID unifies all TINs previously issued by the FIRS and State Internal Revenue Services into a single identifier,” the Service said.

“For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used. You do not need a physical card; the Tax ID is a unique number directly linked to your identity.”

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The FIRS explained that the integration of NIN and CAC numbers into the tax system is designed to simplify identification, reduce duplication, close loopholes for tax evasion and promote fairness by ensuring that individuals and businesses earning taxable income contribute appropriately.

Tax analysts say the development significantly expands Nigeria’s tax database without imposing additional administrative burdens on citizens. With all Nigerians who have been issued NINs now automatically assigned a Tax ID, the government can more effectively bring eligible earners into the tax net.

Data from the NIMC show that as of October 2025, about 123.9 million Nigerians had been issued a NIN, highlighting the scale of potential tax coverage under the new framework.

The FIRS’ clarification also allays fears that Nigerians would be required to undergo another lengthy registration process to obtain a Tax ID in order to access banking services from next year.

Reacting to public concerns, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, reiterated that the new law does not mandate all Nigerians to obtain a Tax Identification Number by default.

According to Oyedele, Section 4 of the NTAA applies specifically to “taxable persons,” defined as individuals or entities earning income from trade, business or other economic activities. He explained that people without taxable income—such as students, dependents and the unemployed—are not required to obtain a Tax ID.

“The requirement is tied to taxable income, not mere existence,” Oyedele said. “If you are not earning income, you are not required to have a Tax ID.”

He also noted that since 2020, businesses and corporate bank accounts have already been required to provide a Tax Identification Number, making the new provisions an extension rather than a sudden policy shift.