The Digest:
As the January 1, 2026, enforcement date for Tax Identification Number (Tax ID) compliance approaches, widespread confusion has prompted official clarifications to dispel myths and outline the new requirements. The policy, anchored in the Nigerian Tax Administration Act 2025, aims to streamline tax identification but has sparked concerns over account restrictions and automatic deductions.
Key Points:
- The Tax ID requirement is not new; it was established under the 2020 Finance Act.
- Personal savings accounts not used for business or income generation are exempt.
- The term “Tax ID” now unifies previous identifiers like TIN, using NIN or CAC numbers.
- Existing TIN holders do not need to re-register; their number remains valid.
- Registration is free, done online, and does not involve a physical card or biometrics.
- All businesses, including small, unregistered ones, must have a Tax ID.
- There will be no automatic tax deductions from bank accounts; due process is required.
- Low-income earners (below ~₦100,000 monthly) are exempt from personal income tax.
Sources: Business Day, Business Post
