New Tax Law Clarifies TIN Requirement for Bank Accounts

T The Nigeria Tax Administration Act (NTAA) has reinforced the use of a Tax Identification Number (TIN) for certain financial transactions, particularly for opening bank accounts.

In a statement released on its official X handle, Fiscal Reforms Nigeria explained that the NTAA does not introduce a new regulation but rather clarifies an existing policy that has been in effect since the Finance Act of 2019.

According to the clarification, only “taxable persons”—defined as individuals who earn income from trade, business, or other economic activity—are required to register with the tax authority and obtain a TIN. Ordinary citizens who do not earn taxable income are not mandated to get a TIN.

The agency noted that the measure is intended to create a fairer and more transparent tax system while protecting citizens’ rights.

Quoting the statement, Fiscal Reforms Nigeria said:

> “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 means for banking, businesses, and everyday life. This FAQ provides answers, clarifies misconceptions, and highlights the safeguards in place to protect citizens while ensuring a fairer, more transparent tax system.”