Tax identification now integrated with NIN, CAC records under new framework
The Federal Inland Revenue Service (FIRS) has debunked claims that Nigerians must obtain a separate Tax Identification Number (TIN) before they can open or operate bank accounts, assuring citizens that the system has been designed to work seamlessly with existing national registries.
The clarification follows widespread concerns triggered by reports suggesting that from January 2026, individuals would be compelled to present a TIN in order to maintain or open bank accounts. The reports, which quickly gained traction across social and traditional media, sparked fears of additional bureaucratic hurdles for citizens and businesses.
Addressing the controversy, Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of FIRS, Zacch Adedeji, explained in a post on her official X handle that the claims were misleading and failed to capture the essence of Nigeria’s evolving tax framework.
According to her, the new system automatically integrates taxpayers into the national tax directory using existing identifiers such as the National Identification Number (NIN) for individuals and Corporate Affairs Commission (CAC) registration numbers for businesses. This, she emphasized, eliminates the need for citizens or organizations to manually apply for a separate TIN.
“The misconception that Nigerians cannot own or operate a bank account without a tax ID overlooks the integrated design of the new TIN system,” she wrote. “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.”
She explained that the TIN, a 13-digit identifier, is designed to uniquely capture details of all taxable persons and entities across the country. It encodes issuance year, registry source, state of registration, and includes a cryptographic fragment for security. Rather than functioning as an isolated requirement, the TIN serves as a statutory tool that allows taxpayers, whether individuals, registered businesses, or associations, to be uniquely verified.
On how the framework works in practice, Atoyebi noted that individuals automatically fulfill tax compliance once they provide their NIN during processes such as bank account opening or Know Your Customer (KYC) verification. In such cases, the system retrieves their TIN from the national directory in real time without requiring any further action from the individual.
For businesses, she added, the TIN is directly tied to their RC numbers issued by the CAC, while cooperatives, partnerships, professional associations, and trustees are also covered through their respective registry records. This integration, according to her, provides a unified and transparent system for financial institutions and regulators to confirm tax status without demanding additional paperwork.
Beyond resolving compliance issues, Atoyebi highlighted the broader benefits of the framework, noting that it fosters inclusivity, strengthens financial access, and reduces fraud. “The system eliminates duplicate or false identities by ensuring that every taxpayer is tied to a verifiable registry,” she said. “It also provides banks and regulators with a single, reliable source of truth for onboarding, reporting, and compliance requirements.”
She stressed that the model not only simplifies the experience for citizens and businesses but also positions Nigeria’s tax system for global interoperability. By aligning with international standards, the framework supports trade finance, cross-border compliance, and digital economic growth.
“In practice, this means a Nigerian walking into a bank with their NIN is already tax-compliant,” she explained. “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 compatibility in Nigeria’s evolving economy.”
With this clarification, the FIRS has sought to lay to rest public anxiety, affirming that citizens will not face fresh bureaucratic bottlenecks in accessing banking services. Instead, the integrated TIN system is intended to strengthen financial transparency while streamlining compliance for individuals and organizations alike.
0 Comments