In a statement released via its verified X handle on Saturday, the Fiscal Reforms of Nigeria clarified that the measure stems from provisions of the Nigeria Tax Administration Act (NTAA) and the earlier Finance Act of 2019, which amended section 49 of the Personal Income Tax Act.
The President Bola Tinubu-led Nigerian government has insisted that the controversial policy requiring citizens and business owners to present a Tax Identification Number (TIN) to operate bank accounts is not new, but a continuation of existing tax laws.
In a statement released via its verified X handle on Saturday, the Fiscal Reforms of Nigeria clarified that the measure stems from provisions of the Nigeria Tax Administration Act (NTAA) and the earlier Finance Act of 2019, which amended section 49 of the Personal Income Tax Act.
The post, titled “The New Tax Acts and Tax ID – What You Need to Know”, was issued to quell growing public anger and confusion over the requirement, which many Nigerians fear could further complicate access to banking services in a country where financial inclusion remains low.
According to the government’s FAQ:
“Section 4 of the NTAA requires all taxable persons to register with the tax authority and obtain a Tax ID. A ‘taxable person’ is someone who carries on trade, business, or other economic activity to earn income. Banks and other financial institutions are required to request a Tax ID from taxable persons. Individuals who do not earn income and are not taxable persons are not required to obtain a Tax ID.”
Responding to whether the requirement was a new development, the statement said:
“No. This is not a new policy. It has been in place since the Finance Act, 2019. Since January 2020, individuals opening a business account have been required to provide a Tax Identification Number (TIN). The NTAA only strengthens and harmonises this requirement.”
𝐓𝐡𝐞 𝐍𝐞𝐰 𝐓𝐚𝐱 𝐀𝐜𝐭𝐬 𝐚𝐧𝐝 𝐓𝐚𝐱 𝐈𝐃 – 𝐖𝐡𝐚𝐭 𝐘𝐨𝐮 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰
The Nigeria Tax Administration Act (NTAA) mandates the use of Tax Identification Numbers (Tax ID) for certain transactions. Understandably, many Nigerians have questions about what this… pic.twitter.com/f5GVqSbqRZ
— Fiscal Reforms Nigeria (@fiscalreformsng) September 13, 2025
The clarification comes amid heated debates among Nigerians, who argue that while the law may not be new, enforcement mechanisms could lead to exclusion of low-income earners and petty traders who depend on small-scale bank transactions for survival.
Civil society groups have also criticised the government’s tax reforms, alleging they are being rolled out without adequate public sensitisation and safeguards for the most vulnerable citizens.