The promise and pitfalls of Nigeria’s new tax identification system

A Tax Identification Number (TIN), now formally referred to as a Tax ID under the Nigeria Tax Administration Act (NTAA) 2025, is the unique identifier issued by the Federal Inland Revenue Service (FIRS) or State Boards of Internal Revenue (SBIRs). It serves as each taxpayer’s official identity, enabling authorities to track payments, monitor compliance, and maintain accurate records.

This Tax ID is mandatory for every taxable person, business, and government entity as part of efforts to harmonise and digitise tax administration. The requirement also extends to non-resident persons supplying taxable goods or services or earning income from Nigeria, except those deriving only passive investment income.

The NTAA 2025 revolutionises tax registration by integrating existing identification systems, allowing an individual’s National Identification Number (NIN) and a company’s Corporate Affairs Commission (CAC) registration number to serve as their primary Tax ID. This step significantly reduces duplication and simplifies compliance. Companies now receive a Tax ID automatically during CAC registration, while individuals and self-employed persons can register using their NIN, leveraging existing data.

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According to Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reform Committee, the Tax ID is not a physical card but a unique number linked to each taxpayer, and critically, registration through official FIRS, Joint Tax Board (JTB), or State IRS platforms is free of charge.

For those whose Tax ID is not automatically generated or who need to validate their existing number, the process involves providing basic information, including date of birth, BVN, NIN, or CAC certificate, phone number, and email address. While the system is designed to generate the TIN automatically, applicants must utilize several channels to ensure validation, including the JTB online portal at https://tin.jtb.gov.ng, in-person visits to the nearest FIRS or State IRS office, or engagement with an accredited tax agent. Once the form is submitted, a TIN slip is typically sent via email or made available for download, which applicants can verify on the JTB portal.

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Despite automation and multiple registration channels, several structural and administrative challenges actively thwart smooth implementation. Overlapping identification systems such as BVN, NIN, and previous TINs have created data mismatches that flag otherwise valid applications for manual review. Furthermore, poor internet access, especially in rural areas, and long queues at tax offices cripple the process for many applicants who cannot navigate the online system. This is compounded by limited public awareness and miscommunication, which have fuelled confusion, particularly among informal sector workers who are uncertain about their tax obligations, and by resistance from low-income earners, who fear being brought under the tax net.

The Tax ID initiative under the NTAA is ultimately designed to streamline tax administration and ensure fairness. Achieving this goal, however, requires overcoming systemic bottlenecks, addressing the digital divide, and eliminating administrative resistance to ensure the reform successfully simplifies compliance for all citizens.