The Federal Government has directed that all taxable persons must obtain a Tax Identification Number (Tax ID) by 1 January 2026 in line with the Nigeria Tax Administration Act (NTAA).
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said in a statement that the law requires all individuals and businesses engaged in economic activity to register with the tax authority.
“Section 4 of the NTAA requires all taxable persons to register with the tax authority and obtain a Tax ID. A ‘taxable person’ is someone who carries on trade, business, or other economic activity to earn income. Banks and other financial institutions are required to request a Tax ID from taxable persons,” Oyedele explained.
He emphasised that ordinary Nigerians who do not run businesses or earn taxable income are exempt. “Individuals who do not earn income and are not taxable persons are not required to obtain a Tax ID,” it added
On whether the directive was new, Oyedele clarified: “This is not a new policy. It has been in place since the Finance Act, 2019, which amended section 49 of the Personal Income Tax Act. Since January 2020, individuals opening a business account have been required to provide a Tax Identification Number (TIN). The NTAA only strengthens and harmonises this requirement.”
The statement further explained that the new law uses the term “Tax ID” to unify identification systems across tax authorities. “Ultimately, your National Identification Number (NIN) for individuals and Corporate Affairs Commission (CAC) RC number for companies will serve as your Tax ID, reducing duplication and simplifying compliance,” Oyedele said.
He further explained that the new law uses the term “Tax ID” to unify identification systems across federal and state tax agencies. “Ultimately, your NIN (for individuals) and CAC RC number (for companies) will serve as your Tax ID, reducing duplication and simplifying compliance,” the statement read.
Clarifying further, Oyedele stressed that Nigerians who already have a TIN do not need to re-register, while those without one would need their NIN or CAC RC number to register.
“Your existing TIN remains valid. If you already have one, you do not need to register again. For those without a TIN, you will need your NIN (individuals) or CAC registration documents (companies) to process your Tax ID,” he said.
Oyedele assured citizens that obtaining a Tax ID is free and seamless. “To obtain it, you can visit the nearest Federal Inland Revenue Service (FIRS), State Internal Revenue Service, or Joint Tax Board (JTB) office, or apply online via their official websites. It is free of charge. Please do not patronise touts or unofficial agents,” he advised.
The committee added that Nigerians in the diaspora and foreign companies operating in the country are also covered under the law, with simplified processes introduced for registration. Government-owned enterprises and agencies are not exempted.
Failure to obtain a Tax ID by the 1 January 2026 deadline will attract sanctions for taxable persons. “Without a Tax ID, a taxable person may not be able to operate bank accounts, insurance policies, pension accounts, or investment accounts. Sanctions also apply under the NTAA,” the statement warned.
The reforms, Oyedele maintained, are intended to create a fairer system.
In his words, “The aim is to simplify identification, reduce duplication, and close loopholes that allow tax evasion. For most individuals and businesses, their NIN or CAC RC number will serve as their Tax ID with no extra paperwork. This ensures fairness so that everyone who earns taxable income contributes their share while protecting low-income citizens who are not taxable.”
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