– Policy targets taxable individuals, not ordinary Nigerians, says government
By Opara Ejike
The Federal Government has defended its directive mandating the presentation of a Tax Identification Number (TIN) for opening and operating bank accounts by business owners and other taxable persons, stating that the move is aimed at expanding the national tax base and improving revenue compliance.
The policy, which takes effect from January 1, 2026, will also apply to individuals and entities seeking to access insurance, stockbroking, and related financial services.
In an official statement, the government clarified that the policy is not intended for ordinary Nigerians with no taxable income, but specifically for individuals engaged in trade, business, or other economic activities deemed taxable under Nigerian law.
Only taxable persons are required to present a TIN. This is not a blanket requirement for every citizen, said Muhammad Nami, Chairman of the Federal Inland Revenue Service (FIRS).
The mandate is based on existing laws, particularly the Finance Act of 2019 and the Tax Administration (Self-Assessment) Regulations of 2011, which empower tax authorities to ensure compliance by linking financial services access to tax identification.
As part of the implementation process, the government has indicated that National Identification Numbers (NIN) and Corporate Affairs Commission (CAC) registration numbers may be integrated with TINs, to streamline verification and reduce administrative burden.
According to government officials, the enforcement is part of broader reforms aimed at enhancing tax compliance, formalizing informal economic activities, reducing tax evasion, and improving Nigeria’s tax-to-GDP ratio, which remains among the lowest in Africa. The move is also expected to curb illicit financial flows and enable more accurate national planning and budgeting.
While the government insists the policy is in the public interest, several stakeholders have expressed concern that it could unintentionally restrict financial access, especially for low-income earners and small-scale traders in rural communities.
Civil society organisations and financial inclusion advocates are calling for public sensitisation campaigns, simplified TIN registration processes, and safeguards against exclusion or bureaucratic delays.
Without proper awareness and infrastructure, this policy could create barriers for the very people the government is trying to bring into the formal economy, said Ada Ijeoma, a policy analyst at the Centre for Economic Inclusion.
With the January 2026 deadline approaching, the FIRS says it is working closely with commercial banks, fintech companies, and state tax authorities to ensure a smooth rollout. A transition period is being provided to allow individuals and businesses ample time to register and comply.
The agency also noted that individuals who are no longer economically active or have ceased doing business can apply to suspend or deactivate their TINs, thereby avoiding unnecessary obligations.
The success of the TIN-for-banking policy will largely depend on transparent implementation, grassroots education, and accessible registration channels. While the government frames it as a necessary step toward fiscal reform, the burden of ensuring it does not deepen financial exclusion rests squarely on its execution strategy.
