Amid ongoing conversations on Nigeria’s tax reforms, a growing belief has taken root — that citizens who do not have a Tax Identification Number (TIN) cannot operate or open a bank account.
According to Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of the Federal Inland Revenue Service (FIRS), this assumption is incorrect. She made this clarification in a report published by Punch.
Aderonke explained that the country’s new tax administration framework was designed to integrate smoothly with existing national registries. This means that individuals and organisations are already identifiable for tax purposes without taking additional steps.
“The Tax Identification Number is not an extra burden on Nigerians. It is simply a tool that links seamlessly with existing databases such as the National Identification Number (NIN) for individuals and the RC Number for companies,” she said.
Under the Nigeria Tax Administration Act 2025, the TIN serves as a 13-digit unique identifier that encodes vital details, including the year of issuance, source registry, and state of registration. It also carries a security fragment and check digit to prevent duplication or fraud.
For individuals, the TIN is automatically tied to their NIN issued by the National Identity Management Commission. This ensures that when a person provides their NIN — for instance, while opening a bank account — the system automatically retrieves and links the TIN in real time.
“You don’t need to walk into a bank with a separate tax ID. Once your NIN is verified, your TIN is already attached,” Aderonke clarified.
The same integration applies to businesses. For companies, the TIN is linked to their Corporate Affairs Commission registration number, while associations, cooperatives, and other legal entities have theirs connected through their recognised registries.
According to her, this system offers several benefits:
- Seamless banking access: Individuals and firms can open accounts without providing a separate TIN.
- Fraud prevention: Duplicate or false identities are eliminated.
- Regulatory ease: Banks have a single, trusted database for compliance checks.
- Inclusivity: Professional bodies and associations are automatically covered.
- Global readiness: Nigeria’s tax system can interact with international financial and trade platforms.
She stressed that the misconception about bank account restrictions fails to recognise the inclusive design of the TIN framework. “In reality, a Nigerian with a valid NIN is already tax-compliant. The bank does the rest at the backend. This reform is not a hurdle but a step towards transparency, inclusion, and global integration in our digital economy,” she added in the Punch report.
