The Nigeria Revenue Service (NRS), in collaboration with the Joint Revenue Board (JRB), has introduced a mandatory Taxpayer Identification (Tax ID) system for all taxable individuals and entities in Nigeria.
Announcement and Legal Basis
The announcement was made on Monday, May 18, via a notice on the NRS's X handle. According to the NRS, the initiative is backed by Sections 6, 7, and 8 of the Nigeria Tax Administration Act, 2025, which requires every taxable person to obtain a Tax ID.
Objectives of the New System
The agency stated that the new system aims to strengthen tax administration, improve transparency, and streamline service delivery across federal and sub-national tax authorities. The Tax ID will serve as a single, unified identity for all taxpayers, enabling seamless interaction with tax authorities at both federal and sub-national levels.
The system is designed to consolidate taxpayer records, eliminate duplication, and ensure more efficient management of tax-related information. It will simplify compliance procedures, including registration, tax filing, and payment.
Enhancing Accountability
The NRS also noted that the system would enhance accountability in tax collection by improving the visibility and tracking of taxpayer information. It will reduce leakages and improve accountability, while harmonizing taxpayer information across all levels of government.
The agency emphasized that the framework will bring about a more efficient and transparent tax administration system for all Nigerians.
