By LEVI JOHNSON
The Federal Inland Revenue Service (FIRS) has formally clarified that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) will automatically serve as the Tax Identification Number (TIN) for individual Nigerians beginning January 1.
The clarification was issued as part of an ongoing public awareness campaign on recent tax reforms, shared by FIRS via its official X (formerly Twitter) handle, amid growing public conversations and concerns around Nigeria’s evolving tax framework.
NIN to Function as Tax ID for Individuals Nationwide
According to FIRS, individual taxpayers will no longer need to apply for or obtain a separate Tax Identification Number, as their existing NIN will now function as their Tax ID across all tax-related and qualifying financial transactions.
The agency explained that this integration is designed to simplify taxpayer identification, reduce administrative bottlenecks, and eliminate duplication across federal and state tax systems.
“The Tax ID unifies all Tax Identification Numbers previously issued by FIRS and State Internal Revenue Services into a single identifier,” the Service stated.
Under the new arrangement, taxpayers will not be issued a physical Tax ID card. Instead, the Tax ID is digitally linked to the individual’s NIN, ensuring seamless verification across government platforms.
CAC Numbers to Serve as Tax ID for Businesses
In a similar reform targeting corporate entities, FIRS confirmed that businesses registered with the Corporate Affairs Commission (CAC) will also no longer require a separate Tax Identification Number.
Henceforth, a company’s CAC registration number (RC number) will automatically function as its official Tax ID. This applies to all registered businesses operating within Nigeria’s formal economy.
FIRS noted that the move is expected to significantly reduce compliance costs for businesses while improving the accuracy of taxpayer records nationwide.
Tax ID Requirement Not New, FIRS Explains
Addressing widespread misconceptions, FIRS stressed that the requirement for a Tax ID is not a new policy, but rather a reinforcement of existing legal provisions.
The agency explained that the requirement is anchored in the Nigeria Tax Administration Act (NTAA), which takes effect in January 2026, and builds on similar provisions contained in the 2019 Finance Act.
These laws mandate the use of a Tax Identification Number for certain financial and commercial transactions, including bank account ownership and other regulated activities.
According to FIRS, recent public reactions were largely driven by misinformation and incomplete understanding of the reforms.
Closing Loopholes and Strengthening Tax Compliance
FIRS stated that the integration of NIN and CAC numbers into the tax system is aimed at strengthening Nigeria’s tax administration by closing loopholes that enable tax evasion and identity duplication.
The Service added that the reform will help promote fairness by ensuring that all eligible income earners are properly captured within the tax net and contribute their fair share to national development.
By harmonising taxpayer identities across agencies, FIRS believes the new system will also enhance transparency, improve revenue tracking, and reduce opportunities for fraud.
FIRS Urges Nigerians to Ignore Misinformation
The revenue agency urged Nigerians to disregard misleading narratives surrounding the new tax framework, assuring the public that the reforms are designed to make tax compliance easier—not more burdensome.
FIRS reaffirmed its commitment to continuous stakeholder engagement, public education, and transparent communication as implementation progresses.
With the adoption of digital identifiers, tax experts say Nigeria is aligning its tax administration with global best practices, while leveraging existing identity infrastructure to improve efficiency.
As the January rollout approaches, FIRS encouraged individuals and businesses to ensure their NIN and CAC records are accurate and properly linked, noting that this will guarantee smooth interaction with tax and financial institutions under the updated system.
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