The Federal Inland Revenue Service (FIRS) has announced a policy change in Nigeria’s tax administration. Effective from 2026, the National Identification Number (NIN) for individuals and the Corporate Affairs Commission (CAC) registration number for businesses will serve as the official Tax Identification Numbers (TIN). This policy is based on the Nigeria Tax Administration Act (NTAA) and aims to streamline tax processes, improve compliance, and increase transparency.

Under this framework, the NIN, issued by the National Identity Management Commission (NIMC), will automatically function as the TIN for all Nigerian citizens. For businesses, the CAC registration number will serve as the TIN. This eliminates the need for separate tax identification numbers, addressing previous criticisms regarding administrative complexity and redundancy.

The FIRS has clarified that this change consolidates all previously issued tax identification numbers, whether from the FIRS or State Internal Revenue Services, into a single identifier. The stated objectives are to simplify the tax system, reduce administrative bottlenecks, and address loopholes that have facilitated tax evasion.

According to FIRS communications, individuals and companies will not require physical tax ID cards. The NIN or CAC number will be used as a unique identifier linked to the taxpayer’s identity. The requirement for a tax identification number is not new; it has existed since the Finance Act of 2019. The NTAA expands and reinforces these provisions, applying them to a broader range of transactions.

The policy will directly impact banking and financial transactions. Banks will be required to request a TIN from all taxable Nigerians for certain transactions, including the opening and operation of bank accounts. This measure is intended to ensure that all participants in the formal economy are registered within the tax system, thereby broadening the tax base and improving revenue collection.

Public reactions have included concerns about the complexity of the new requirements and the risk of excluding individuals without NINs or CAC numbers. The FIRS has responded by stating that the reforms are designed to increase efficiency, transparency, and equity in tax administration, not to create additional burdens.

The FIRS asserts that integrating NIN and CAC numbers as tax identifiers will reduce record duplication, minimize tax evasion, and promote fairness by ensuring that all taxable individuals and entities contribute appropriately. The agency has advised Nigerians to ensure their NINs and CAC numbers are current and properly linked to their financial and business activities in preparation for the policy’s implementation.

Fiscal policy experts have generally supported the move, noting its alignment with international best practices in tax administration and digital identity management. Leveraging existing identification systems is expected to create a more robust and inclusive tax infrastructure, which is considered essential for funding public services and supporting economic development.

As the 2026 implementation date approaches, the FIRS plans to increase public awareness and provide guidance to facilitate compliance. The agency has also committed to protecting taxpayer data and ensuring a smooth transition to the new system.

In summary, the adoption of NIN and CAC numbers as tax identification numbers represents a significant change in Nigeria’s tax administration. The policy is intended to simplify compliance, enhance revenue generation, and promote a more equitable fiscal environment by utilizing existing identification systems.