The Nigerian government has reaffirmed that the requirement for citizens and business owners to present a Tax Identification Number (TIN) to operate bank accounts is not a new policy but an enforcement of existing tax laws.
In a statement released on Saturday through its official X (formerly Twitter) handle, the Fiscal Reforms of Nigeria explained that the measure is rooted in the Nigeria Tax Administration Act (NTAA) and the Finance Act of 2019, which amended section 49 of the Personal Income Tax Act.
The government’s post, titled “The New Tax Acts and Tax ID – What You Need to Know,” aimed to address public criticism and confusion over the rule. Many Nigerians have expressed concern that the policy could further restrict access to banking services, particularly for low-income earners and small-scale traders who rely on basic financial transactions.
According to the government, Section 4 of the NTAA makes it mandatory for all taxable persons — defined as anyone engaged in trade, business, or other income-generating activities — to register with the tax authority and obtain a Tax ID. Banks and financial institutions must verify this before offering account services.
The statement clarified that individuals who do not earn income and are therefore not considered taxable persons are not required to obtain a Tax ID.
“This is not a new directive,” the statement stressed. “Since January 2020, individuals opening business accounts have been required to provide a Tax Identification Number. The NTAA only strengthens and harmonises this requirement.”
Despite the clarification, public debate continues. Critics argue that while the policy may be legally sound, its enforcement could marginalize vulnerable citizens and further complicate Nigeria’s already low financial inclusion rates.
Civil society organisations have also urged the government to intensify public awareness campaigns and introduce safeguards to ensure that low-income Nigerians are not shut out of the financial system.
