The Federal Inland Revenue Service (FIRS) has addressed rising public anxiety over Nigeria’s evolving tax framework, clarifying growing concerns about identification requirements for tax-related transactions.
In a statement issued on Monday, the Service explained that recent changes form part of a broader reform of Nigeria’s tax administration system, aimed at simplifying compliance, improving efficiency, and strengthening accountability across government databases.
The clarification follows widespread speculation triggered by provisions in the new tax laws that require a Tax Identification Number (Tax ID) for certain activities, including the opening and operation of bank accounts. Many Nigerians had feared the reforms would introduce an entirely new and burdensome registration process.
According to FIRS, the requirement for a Tax ID is not new. The agency noted that the Nigeria Tax Administration Act, which is scheduled to take effect in January 2026, only reinforces an existing framework that has been in place since the Finance Act of 2019.
While addressing the issue, the Service stated, “The Tax ID unifies all Tax Identification Numbers previously issued by the FIRS and State Internal Revenue Services into a single identifier.”
It further clarified, “For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used. You do not need a physical card, as the Tax ID is a unique number linked directly to your identity.”
FIRS also explained that the same streamlined approach applies to businesses, noting that registered companies will use their Corporate Affairs Commission (CAC) registration numbers as their official tax identifiers.
According to the agency, the updated system is designed to reduce duplication across government records, simplify identification processes, and improve accountability within the tax system.
The Service added that the reform would help curb tax evasion by ensuring that individuals and businesses with taxable income are properly captured, while making compliance easier for taxpayers.
FIRS urged Nigerians to ignore misleading information circulating about the policy, stressing that the reforms are intended to promote transparency, efficiency, and fairness in tax administration, not to impose additional hardship.
It further noted that integrating tax records with existing national databases would strengthen revenue collection while easing administrative processes for both taxpayers and government institutions.
