The Federal Government has announced that beginning January 1, 2026, every taxable Nigerian, including individuals, corporate entities, and non-residents supplying taxable goods and services,must obtain a Taxpayer Identification Number (TIN) in compliance with the newly signed Nigeria Tax Administration Act (NTAA) 2025.
The policy was disclosed on Thursday by Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS), during a press briefing in Abuja.
President Bola Tinubu signed the tax reform bills into law in June 2025 as part of efforts to modernise the nation’s tax system, broaden the revenue base, and strengthen compliance.
“The TIN requirement is a cornerstone of our tax reform efforts to enhance compliance, streamline revenue collection, and foster a transparent fiscal environment,” Adedeji said.
Key Provisions of the Law
Mandatory TIN Registration: Under Part II, Section 4 of the Act, TIN registration is compulsory for citizens, business owners, and government agencies at all levels.
Financial Transactions: A valid TIN will now be required to open and operate bank accounts, obtain insurance, engage in stock exchange transactions, and enter contracts with federal or state governments.
Compliance Monitoring: Tax authorities are empowered to issue, refuse, suspend, or deregister TINs depending on compliance. Applications must be processed within five working days, while businesses that close operations must notify authorities within 30 days.
Relief for Low-Income Earners & MSMEs: To ease the burden, the government exempted low-income earners and more than 90% of micro, small, and nano businesses from certain taxes.
VAT Exemptions: Essential goods and services — including food, healthcare, and transportation — will remain VAT-free to cushion the impact on living costs.
The government has provided a six-month preparatory window before enforcement begins. During this period, the NRS will embark on nationwide awareness campaigns, capacity-building sessions, and system upgrades to ensure a smooth rollout.
The reforms have sparked mixed reactions. While tax experts and policy advocates praise the move as a step toward accountability, transparency, and improved fiscal discipline, some small business owners have voiced concerns about potential bureaucratic bottlenecks in the registration process.
With the countdown to January 2026 now underway, businesses and individuals are urged to begin early registration to avoid disruptions in financial transactions and access to government contracts.
