Only taxable Nigerians need tax ID, not students or dependents, says Taiwo Oyedele 

Taiwo Oyedele, the tax reform chair has dismissed claims that all bank accounts are mandated to have Tax Identification Number (TIN) before January 2026, and those who need it already have, since it’s been in place for over 5 years.

“Section 4 of the NTAA requires a taxable person to require and obtain a Tax ID, a taxable income is anyone who earns income through trade or any economic activity, so banks must request a Tax ID from taxable persons,” he said. “Individuals who do not earn income, such as students and dependents, do not need to obtain a Tax ID.”

He added that since 2020, anyone operating a bank account for businesses, or a corporate account, has needed a tax Identification number.

He said that income earners and businesses already issued TINs will not be required to obtain new tax identification numbers under the new framework.

Read also: Tax laws do not permit direct bank debits, Oyedele says

The clarification follows a wave of social media posts suggesting a mandatory Tax ID for all bank accounts, which could lead to people having a run on banks.

He explained that the concern appears to stem from a misunderstanding of the Nigerian Tax Administration Act (NTAA), which takes effect on January 1, 2026. Section 4 of the Act makes possession of a Tax Identification Number (TIN) mandatory for all taxable individuals as part of efforts to strengthen tax compliance and monitoring.

He noted that the policy itself is not new. The Finance Act 2020 amended Section 49 of the Personal Income Tax Act to introduce the TIN requirement, while the NTAA now provides clearer legal backing and a more structured enforcement framework for provisions that have existed since 2020.

He further clarifies that Tax ID which is used in the new tax act instead of TIN, is a unified term that consolidates other TIN to help reduce duplication and simplify compliance

“Previously, different agencies like FIRS/NRS, JTB and state IRS issued separate TIN, in the nearest future your NIN for individuals and CAC registration number for companies will serve as your Tax ID,”  Oyedele said.

Oyedele explained that there’s no need for biometrics for the Tax ID and it’s not necessarily a physical card. He said that a Tax ID is a unique number linked to one’s identity.

Read also: Why Nigeria cannot and will not tax your bank account

“From January 1, 2026, taxable persons without a TIN may face operational difficulties in running their bank accounts,” Oyedele said, “but this should not be mistaken for automatic deductions or direct debits. The restriction does not apply to individuals who do not earn income from business or investments.”

Nigeria’s tax authorities have increasingly emphasised voluntary compliance as the backbone of revenue mobilisation, with recent gains in non-oil revenue driven largely by improved filing systems, wider tax net coverage, and digital platforms rather than aggressive enforcement actions.

Under the new framework, commercial banks are required to file periodic reports on accounts with a quarterly turnover of N25 million and above with the Federal Inland Revenue Service or other relevant tax agencies for monitoring purposes.

Oyedele said the revised threshold represents a significant increase from the previous N10 million benchmark, translating to nearly N100 million in annual turnover before any reporting obligation is triggered. He emphasised that the reporting requirement is designed to support risk-based tax administration and does not grant banks the authority to deduct funds from customer accounts.

Eniola Olatunji is an experienced journalist at BusinessDay, where she has specialized in reporting on personal and business finance since March 2022.

She focuses on creating engaging and precise news stories, with a keen emphasis on the fixed-income market, banking, personal finance, cost of living, and the Nigerian economy. Her work also encompasses extensive market research and economic trend analysis.

Eniola is passionate about empowering individuals to make informed financial decisions and is dedicated to shedding light on the intricate workings of the economy. She holds a Bachelor of Science degree in Pure & Applied Chemistry from the University of Lagos.

Eniola Olatunji was shortlisted for The Future Awards Africa Prize for Journalism..

Join BusinessDay whatsapp Channel, to stay up to date