The Nigeria Tax Administration Act (NTAA) has reinforced and clarified the mandatory use of Tax Identification Numbers (TIN) for certain tra...
The Nigeria Tax Administration Act (NTAA) has reinforced and clarified the mandatory use of Tax Identification Numbers (TIN) for certain transactions, including the opening of bank accounts.
According to Fiscal Reforms Nigeria, the Act does not introduce a new requirement but clarifies an existing policy that has been in effect since the enactment of the Finance Act, 2019. It aims to create a fairer and more transparent tax system while safeguarding the rights of citizens.
The group stated:
"The Nigeria Tax Administration Act (NTAA) mandates the use of Tax Identification Numbers (TIN) 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."
Frequently Asked Questions:
Q1: Is it true that everyone must obtain a TIN before opening or operating a bank account?
A1: Yes—but with clarifications. Section 4 of the NTAA requires all taxable persons to register with the tax authority and obtain a TIN. A taxable person is defined as someone who earns income through trade, business, or other economic activity.
Banks and financial institutions are mandated to request TINs from such individuals. However, people who do not earn income and are not classified as taxable persons are not required to obtain a TIN.
Q2: Is this a new policy?
A2: No. The requirement has existed since the Finance Act of 2019, which amended Section 49 of the Personal Income Tax Act. Since January 2020, individuals opening a business account have been required to provide a TIN. The NTAA merely strengthens and harmonises this pre-existing rule.
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