Nigeria’s evolving tax system has been designed to integrate seamlessly with national registries, ensuring citizens and businesses are automatically tax-compliant without needing to present a separate Tax Identification Number (TIN) when opening bank accounts.
This clarification was provided by Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of the Federal Inland Revenue Service (FIRS), who addressed growing misconceptions about the country’s tax reforms.
“There is a widespread but inaccurate belief that citizens without a Tax Identification Number cannot own or operate a bank account.
“The reality is that Nigeria’s tax system has evolved to integrate seamlessly with existing registries, ensuring every eligible individual or entity is automatically identifiable for tax purposes,” she explained.
According to Atoyebi, the TIN is a 13-digit unique identifier assigned to all taxable persons and entities. It contains coded details, such as the issuance year, registry source (National Identification Number (NIN) for individuals or RC Number for companies), state of registration, and a security fragment.
Far from being a new burden on citizens, it is “a statutory tool that ensures every taxpayer can be uniquely verified within the national tax system.”
For individuals, the TIN is automatically linked to their NIN, which is issued by the National Identity Management Commission (NIMC).
Atoyebi explained: “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.”
She emphasised that this process eliminates the need for manual application or the presentation of a TIN card at banks.
“In practice, 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,” she said.
TIN Automatically Linked to NIN and RC Numbers
For businesses, the TIN is tied directly to the RC Number issued by the Corporate Affairs Commission (CAC). Similarly, for cooperatives, partnerships, professional bodies, and associations, the TIN is connected to their respective recognised registries.
This ensures transparent identification of corporate entities for tax and compliance purposes without the need for additional documentation.
Atoyebi highlighted several benefits of the framework. First, it provides seamless banking access, as individuals and businesses can use their NIN or RC Number, with the TIN automatically integrated behind the scenes.
Second, it strengthens fraud reduction by eliminating duplicate or false identities, ensuring that every taxpayer is tied to a verifiable registry.
Framework Designed to Boost Compliance and Financial Inclusion
She further noted that the system enhances regulatory compliance for banks and financial institutions, providing a single and reliable source of truth for onboarding and reporting.
Importantly, the framework also promotes inclusivity, extending coverage to associations, professional bodies, and trustees, while ensuring global compatibility with international tax and trade systems.
“The misconception that Nigerians cannot own or operate a bank account without a tax ID overlooks the integrated design of the new TIN system.
“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 concluded.
