The Federal Inland Revenue Service (FIRS) has debunked claims that Nigerians must present a separate Tax Identification Number (TIN) before opening or operating bank accounts, describing the notion as a widespread misconception.
According to Arabinrin Aderonke Atoyebi, technical assistant on broadcast media to the FIRS executive chairman, Zacch Adedeji, Nigeria’s tax system has been redesigned to integrate seamlessly with existing national registries, eliminating the need for extra requirements.
“The Tax Identification Number is a 13-digit code assigned to all taxable persons and entities in Nigeria. It encodes details such as issuance year, registry source (NIN for individuals, RC Number for corporates), state of registration, and a security fragment,” Atoyebi explained.
She emphasized that for individuals, the TIN is automatically linked to their National Identification Number (NIN) issued by the National Identity Management Commission (NIMC). When opening a bank account or undergoing Know Your Customer (KYC) checks, banks cross-check the NIN against the database, retrieving the TIN in real time.
Similarly, for companies, the TIN is tied directly to their Corporate Affairs Commission (CAC) registration number, while partnerships, cooperatives, and professional associations are linked to their respective registries.
“This design means neither individuals nor businesses need to apply separately for a tax ID before accessing financial services,” Atoyebi clarified.
Benefits of the Integrated TIN Framework
The FIRS highlighted several advantages of the redesigned tax system:
Seamless Banking: Citizens can open accounts using their NIN or RC Number, with the TIN generated automatically.
Fraud Prevention: Duplicate and false identities are reduced by linking each taxpayer to a verified registry.
Regulatory Confidence: Banks and regulators can rely on a single verified source for KYC and compliance.
Inclusivity: Coverage extends beyond individuals and corporates to associations and trustees.
Global Linkages: The system is designed to align with international financial and compliance platforms.
Addressing the misconception, Atoyebi stressed that Nigerians remain tax-compliant when they provide their NIN at banks, as the TIN is embedded within the system.
“Rather than being a barrier, the TIN framework is a gateway to financial inclusion, transparency, and global compatibility in Nigeria’s growing digital economy,” she added.
