The Federal Inland Revenue Service (FIRS) has clarified recent misconceptions suggesting that Nigerian citizens must possess a Tax Identification Number (TIN) to own or operate a bank account, describing such claims as inaccurate and misleading.
Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of FIRS, explained that the nation’s tax system has evolved to integrate seamlessly with existing national registries, ensuring that every eligible individual or entity is automatically identifiable for tax purposes.
“The debate that one cannot operate a bank account without a TIN has gained traction in some quarters, but it is not true,” Atoyebi said. She emphasized that TIN is a statutory tool designed to uniquely verify taxpayers—whether individuals, businesses, or associations—within the national tax ecosystem.
Under the Nigeria Tax Administration Act, 2025, the FIRS has implemented a National Taxpayer Directory. The TIN is a 13-digit unique identifier that encodes critical information including the issuance year, registry source (National Identification Number for individuals, RC number for corporates), state of registration, and a cryptographic fragment for security, ending with a check digit.
Atoyebi elaborated: “For individuals, the TIN is automatically linked to their National Identification Number (NIN) issued by the National Identity Management Commission (NIMC). When an individual provides their NIN—such as during bank account opening or KYC processes—the system cross-checks the NIN in the national database. The TIN is automatically retrieved and attached to the person’s records. This means citizens do not need to manually apply for or present a tax ID before opening a bank account; the system handles the integration in real time.”
For corporate entities, the TIN is tied directly to the RC Number issued by the Corporate Affairs Commission (CAC). “For cooperatives, partnerships, professional bodies, and other legal entities, the TIN is connected to their respective recognized registries,” she said. “This ensures that corporate entities can be transparently identified for both tax and compliance purposes. Banks and regulators do not require additional documentation beyond the foundational registry numbers to confirm tax status.”
The FIRS aide highlighted the broader benefits of this integrated approach. Individuals and businesses can open and operate bank accounts seamlessly using their NIN or RC Number, while the TIN is automatically integrated behind the scenes. The system also reduces fraud, eliminates duplicate or false identities, and provides banks and financial institutions with a single, consent-driven source of truth for onboarding, reporting, and KYC compliance.
“This framework extends beyond companies to include associations, professional bodies, and trustees,” Atoyebi added. “It is also globally compatible, allowing Nigeria’s tax system to securely interact with international trade, finance, and compliance systems.” She concluded: “The misconception that Nigerians cannot own or operate a bank account without a TIN overlooks the integrated design of the new system. By linking TINs to foundational identifiers such as the NIN and RC Number, compliance is automatic, with no unnecessary barriers. In practice, a Nigerian walking into a bank with their NIN is already tax-compliant.
Far from being a hurdle, the TIN framework is a gateway to financial inclusion, regulatory transparency, and global interoperability in Nigeria’s evolving digital economy.”
Source @TheSUN
