President Bola Ahmed Tinubu has signed the New Nigeria Tax Administration Act (NTAA), introducing a unified Tax Identification Number (Tax ID) system aimed at simplifying compliance, closing loopholes, and improving transparency in the nation’s tax structure.
Under the law, all individuals and businesses engaged in income-generating activities are required to obtain a Tax ID before opening or operating bank accounts. However, citizens who do not earn taxable income are exempt. For individuals, the National Identification Number (NIN) will serve as the Tax ID, while for companies, the Corporate Affairs Commission (CAC) registration number will be used.
Existing Tax Identification Numbers (TINs) remain valid, eliminating the need for re-registration. The Tax ID will be free of charge, issued by relevant tax authorities, and does not require a physical card. The Federal Government has set January 1, 2026 as the compliance deadline, after which taxable persons without a Tax ID may lose access to banking, pension, insurance, and investment services.
The reform is expected to bring significant benefits, including fairness in taxation, protection of low-income citizens from undue burdens, reduction of tax evasion, and the creation of a more transparent and efficient system to support Nigeria’s economic growth and development.