Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed claims that all Nigerians will be required to obtain a Tax Identification Number (TIN) for their bank accounts before January 2026, clarifying that the requirement applies only to taxable individuals and businesses.
Oyedele explained that Section 4 of the Nigerian Tax Administration Act (NTAA), which takes effect on January 1, 2026, mandates only persons with taxable income to obtain a Tax ID. According to him, individuals who do not earn income—such as students and dependents—are not required to have a Tax Identification Number.
“A taxable person is anyone who earns income through trade or any economic activity, and banks are only required to request a Tax ID from such persons,” he said, adding that those without taxable income are exempt from the requirement.
He noted that the policy is not new, as since 2020, anyone operating a business or corporate bank account has been required to have a TIN. Income earners and businesses that already possess TINs will not need to obtain new numbers under the revised framework.
Oyedele said the recent concerns were fueled by misleading social media posts suggesting a compulsory Tax ID for all bank accounts, warning that such misinformation could trigger unnecessary panic and bank runs.
Clarifying further, he said the NTAA merely strengthens and streamlines existing tax laws, building on the Finance Act 2020, which first introduced the TIN requirement under the Personal Income Tax Act.
He also explained that the new tax law uses the term “Tax ID” as a unified identifier to replace multiple TINs previously issued by different agencies. Under the new system, individuals’ National Identification Numbers (NIN) and companies’ Corporate Affairs Commission (CAC) registration numbers will serve as their Tax IDs, reducing duplication and simplifying compliance.
Oyedele stressed that the Tax ID does not require biometrics or a physical card, but is simply a unique number linked to an individual’s or company’s identity.
He added that while taxable persons without a Tax ID may face operational restrictions on their bank accounts from January 2026, this does not mean automatic deductions or direct debits. The measure, he said, does not apply to individuals who do not earn income from business or investments.
Under the new framework, banks will be required to submit periodic reports on accounts with quarterly turnovers of N25 million and above to tax authorities for monitoring. Oyedele noted that this threshold is significantly higher than the previous N10 million benchmark and does not empower banks to deduct funds from customers’ accounts.
He emphasized that Nigeria’s tax reforms are focused on voluntary compliance, improved digital systems, and broader tax net coverage, rather than aggressive enforcement.