In a significant move to streamline tax administration, the Federal Inland Revenue Service (FIRS) has announced a major integration of national identity and business registration systems with the tax framework.
One Number, Multiple Uses: The New Tax ID System
The tax authority has declared that, starting from January 2026, the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) will automatically function as the Tax Identification Number (TIN) for all individuals. This change is part of the public awareness campaign for the incoming Nigeria Tax Administration Act (NTAA).
Similarly, for corporate entities, the Registration Certificate (RC) number issued by the Corporate Affairs Commission (CAC) will seamlessly serve as the company's TIN under this new, unified system. The FIRS made this clarification via its official social media platforms to address widespread public inquiries.
Addressing Public Concerns on Bank Mandates
The announcement comes as a direct response to growing concerns among Nigerians regarding provisions in the new tax laws that mandate a Tax ID for transactions like bank account ownership. Many citizens had expressed apprehension about facing yet another bureaucratic hurdle to obtain a separate number.
The FIRS has moved to allay these fears, explaining that the requirement for a Tax ID is not an entirely new creation. The agency noted that the mandate has existed since the Finance Act 2019 but has been strengthened and given clearer operational guidelines under the current NTAA legislation.
Simplification and Curbing Evasion
According to the revenue service, the core objective of this integration is multi-faceted. The Tax ID will unify all previously issued TINs from the FIRS and various state internal revenue services into a single, unique identifier for each taxpayer.
The agency emphasised that taxpayers do not require a physical card, as the Tax ID is fundamentally a unique number linked directly to an individual's or company's legal identity.
This system is designed to achieve several key goals:
- Simplify taxpayer identification for citizens and businesses.
- Reduce duplication and administrative redundancies across government agencies.
- Close existing loopholes that facilitate tax evasion.
- Ensure greater fairness and equity in tax contributions from all persons earning taxable income.
By leveraging the NIN and CAC databases, the FIRS aims to create a more efficient, transparent, and inclusive tax net, fundamentally changing how Nigerians interact with the tax system from next year.
