The Federal Inland Revenue Service (FIRS) has clarified that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) has automatically become the Tax Identification Number (Tax ID) for individual Nigerians under the new tax framework.

The clarification was made in a public sensitisation video on the new tax laws, which was circulated online.

In the video, the FIRS explained that the reform is aimed at simplifying tax administration and addressing public concerns surrounding the requirement of Tax ID for certain financial and economic transactions.

According to the Service, registered businesses will also not be required to obtain a separate Tax ID, as their Corporate Affairs Commission (CAC) registration number now automatically serves that purpose under the new tax system.

“The Tax ID unifies all TINs previously issued by FIRS and state internal revenue services into a single identifier,” the Service said. “For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used. You do not need a physical card, the Tax ID is a unique number linked directly into your identity.”

This declaration comes amid widespread public concern over provisions in the tax laws suggesting that Tax ID would be mandatory for bank account ownership.

The FIRS explained that the requirement is rooted in the Nigeria Tax Administration Act (NTAA), which is scheduled to come into force from January 1, 2026.

The agency noted, however, that the use of Tax ID for transactions is not a new development. It stated that the requirement has existed since the Finance Act of 2019 and has only been strengthened under the NTAA to improve efficiency and compliance.

The FIRS noted that the new Tax ID system is designed to simplify identification, eliminate duplication, close loopholes that enable tax evasion and promote fairness by ensuring that individuals and businesses earning taxable income contribute appropriately.

With the new arrangement, all Nigerians who have been issued a NIN are now deemed to automatically possess a Tax ID and can be brought into the tax net, provided they earn income that is subject to tax.

This development effectively addresses fears that millions of Nigerians would be required to undergo another round of registration to obtain a Tax ID from 2026 in order to access banking services.

Data released by the National Identity Management Commission show that as of October 2025, about 123.9 million Nigerians have been issued the National Identification Number, a development that significantly expands the country’s capacity to streamline tax administration and improve compliance under the evolving tax system.