- The Federal Government has made the use of a Tax Identification Number (TIN) compulsory for Nigerians in a bid to boost revenue and curb tax evasion.
- The TIN will now be required for key transactions such as opening bank accounts, registering businesses, applying for licenses, and securing government contracts.
- Issued free by the Federal Inland Revenue Service (FIRS), the TIN can be obtained online or at tax offices using valid identification and, for companies, CAC documents. Non-compliance may lead to restrictions on financial and business activities.
The Federal Government has announced that the use of a Tax Identification Number (TIN) is now mandatory for Nigerians, as part of efforts to expand the country’s tax base and improve compliance.
A TIN is a unique number issued by the Federal Inland Revenue Service (FIRS) to individuals and businesses for the purpose of tax administration. It helps the government track taxable activities and ensures accountability in financial transactions.
Why It Matters
With the new directive, Nigerians will now be required to provide their TIN for a wide range of transactions, including opening bank accounts, applying for government contracts, registering companies, obtaining business licenses, and even in some property dealings.
The policy is aimed at curbing tax evasion, improving revenue generation, and aligning Nigeria’s tax system with global standards.
How to Get a TIN
Obtaining a TIN is free of charge and can be done online via the FIRS portal or at any designated tax office. Applicants typically need a valid form of identification (such as a National ID, BVN, or international passport) and proof of address. Businesses will also need their Corporate Affairs Commission (CAC) registration documents.
Implications for Nigerians
- Individuals: Everyday financial transactions may now require a TIN.
- Businesses: Companies will be unable to operate legally without it.
- Compliance: Non-compliance could lead to restricted access to essential services and penalties.
Bottom Line
tunjideniran opined “Why do we need Tax ID again when we already have NIN. Social security number suffices for this in US and NI in the UK. Proliferations of ID seems like another new naira note by Emefiele. It is not necessary. The goal is to harmonise all the IDs. NIN, BVN and now TIN.”
IamKennyBabs said “Sir, how do you differentiate a taxable person from non-taxable person? How will the bank separate the accounts of old people, unemployed, housewives, students etc from others who earned income? Any unique identifier? This is Q3 ’25, with implementation expected in Q1 ’26, won’t.”
The compulsory use of TIN marks a major step in the government’s drive to formalize the economy, boost tax revenue, and reduce dependence on oil income. Nigerians are urged to obtain their tax IDs promptly to avoid disruptions in their personal and business transactions.
Reactions as Nigerians debate the policy
Emmanuel Michael said “How do you define a ‘taxable person’?”
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