
New Tax System Simplifies Compliance and Reduces Loopholes
The Federal Inland Revenue Service (FIRS) has confirmed that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) will now automatically serve as the Tax Identification Number (TIN) for individual Nigerians.
The announcement, part of a public awareness campaign on the new tax framework, comes ahead of the January 2026 enforcement of the Nigeria Tax Administration Act (NTAA). According to the FIRS, this development removes the need for individuals to apply separately for a Tax ID, linking their tax obligations directly to their NIN.
“For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used,” the FIRS explained. “You do not need a physical card. The Tax ID is a unique number tied directly to your identity.”

The new system, the FIRS noted, is designed to unify all previously issued TINs, reduce duplication, close loopholes for tax evasion, and ensure fairness in the collection of revenue. Businesses, on the other hand, will automatically use their Corporate Affairs Commission (CAC) registration number as their Tax ID, aligning company records with the new tax framework.
The NTAA mandates the use of a Tax ID for certain economic transactions, particularly those involving taxable income. However, the FIRS emphasized that not everyone is required to obtain a Tax ID. Individuals without taxable income, such as students or dependents, are exempt.
How To Get Your Tax Identification Number
“Since 2020, anyone operating a corporate or business bank account has needed a Tax ID,” explained Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee. “The NTAA formalizes and strengthens this requirement, but it is not an entirely new obligation for those who earn income.”

As of October 2025, the NIMC reported that 123.9 million Nigerians had been issued NINs, which now effectively brings them into the tax system without requiring additional applications. The move is expected to streamline bank account registration processes, addressing earlier concerns that Nigerians would face additional hurdles in obtaining a TIN.
By tying taxation to the existing NIN database, the FIRS aims to enhance transparency, simplify compliance, and improve revenue collection, while ensuring that every Nigerian with taxable income contributes their fair share.
With the NIN now serving a dual purpose, the government hopes to create a more efficient, inclusive, and accountable tax system, reducing bureaucratic bottlenecks for citizens and businesses alike.