FIRS clarifies new system meant to ensure every individual or entity is automatically identifiable for tax purposes without imposing new hurdles
By Jeph Ajobaju, Chief Copy Editor
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TIN is automatically linked to NIN issued by the National Identity Management Commission (NIMC).
When a customer provides a NIN to open a bank account or for Know Your Customer (KYC) checks, the system cross-checks the database and retrieves TIN in real time.
“Similarly, for businesses, the TIN is tied to the RC Number issued by the Corporate Affairs Commission (CAC). Partnerships, cooperatives, and professional associations also have their TINs linked to their respective recognised registries.
“This design means that neither individuals nor businesses need to present or apply separately for a tax ID before accessing financial services ….
“By embedding TINs into existing national databases, the system guarantees automatic compliance.
“In practice, anyone presenting their NIN at a bank is already tax-compliant – the bank retrieves the TIN during onboarding” – FIRS.
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A National Identity Number (NIN) linked to a bank account is sufficient as a Tax Identification Number (TIN) to operate such an account in the new tax regime beginning January 2026, the Federal Inland Revenue Service (FIRS) has clarified.
Aderonke Atoyebi, Broadcast Media Technical Assistant to FIRS Executive Chairman Zacch Adedeji made the clarification in a statement which explained that the new tax framework is meant to integrate seamlessly with existing national registries.
She said this ensures that every individual or entity is automatically identifiable for tax purposes without imposing new hurdles.
“The Tax Identification Number [TIN] is a 13-digit unique code assigned to all taxable persons and entities in Nigeria. It encodes information such as issuance year, registry source (NIN for individuals, RC Number for corporates), state of registration, and a security fragment,” she explained.
“Far from being a separate requirement, the TIN functions as a statutory tool that enables the FIRS to uniquely verify taxpayers across the country.”
According to her, TIN is automatically linked to NIN issued by the National Identity Management Commission (NIMC).
When a customer provides a NIN to open a bank account or for Know Your Customer (KYC) checks, Atoyebi stressed, the system cross-checks the database and retrieves TIN in real time.
“Similarly, for businesses, the TIN is tied to the RC Number issued by the Corporate Affairs Commission (CAC). Partnerships, cooperatives, and professional associations also have their TINs linked to their respective recognised registries.
“This design means that neither individuals nor businesses need to present or apply separately for a tax ID before accessing financial services.”
She listed the benefits of the new framework to include:
- “Seamless Banking: Citizens can open accounts with their NIN or RC Number, while the TIN is integrated automatically.
- “Fraud Prevention: Duplicate and false identities are reduced since each taxpayer is linked to a verified registry.
- “Regulatory Confidence: Banks and regulators can rely on a single verified source for KYC and reporting.
- “Inclusivity: Coverage extends beyond individuals and companies to associations and trustees.
- “Global linkages: The system is designed to interact with international financial and compliance platforms.”
Atoyebi added: “By embedding TINs into existing national databases, the system guarantees automatic compliance.
“In practice, anyone presenting their NIN at a bank is already tax-compliant – the bank retrieves the TIN during onboarding.
“Rather than a barrier, the TIN framework is positioned as a gateway to financial inclusion, transparency, and global compatibility in Nigeria’s growing digital economy.”
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