Amanze Chinonye
Nigeria has rolled out a unified Tax Identification framework that links tax records directly to existing national identity systems, with the National Identification Number (NIN) now serving as the Tax ID for individuals and Corporate Affairs Commission (CAC) registration numbers forming the basis for companies’ tax identities, Prime Business Africa reports.
The reform, introduced under the Nigeria Tax Administration Act (NTAA) 2025, harmonises tax identifiers previously issued by the Federal Inland Revenue Service (FIRS) and state internal revenue services into a single, centralised system aimed at simplifying tax administration and improving compliance.
Explaining the new framework, Aderonke, a representative of FIRS Broadcast Media, said the unified Tax ID replaces multiple identifiers that had existed across different tax authorities.
Join our WhatsApp Channel“The Tax ID unifies all things previously issued by FIRS and state IRS into a single identifier. For individuals, your NIN automatically serves as your Tax ID; for registered companies, your CAC RC number is used. You don’t need a physical card. The Tax ID is a unique number linked directly to your identity,” she said.
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According to her, individuals are no longer required to apply separately for a Tax Identification Number once they have a valid NIN, while registered businesses rely on their CAC RC numbers for tax identification within the national tax database.
Addressing concerns around enforcement, Aderonke noted that the requirement to use a Tax ID for certain transactions is not new, stressing that it has existed in Nigeria’s tax laws for several years.
“The NTAA mandates the use of a Tax ID for certain transactions. This requirement is not new; it has existed since the Finance Act 2019, but it has now been strengthened under the NTAA,” she explained.
She further clarified that the unified system operates entirely in digital form, with no requirement for physical documentation.
“All TINs previously issued by FIRS and state IRS are now unified. For individuals, the NIN serves as the Tax ID, while for companies and registered businesses, the CAC RC number is used. None of these requires a physical card, as the Tax ID is a unique number linked directly to your identity,” she said.
Tax authorities say the reform is designed to reduce long-standing public confusion around tax registration while improving coordination between federal and state tax agencies. The digital linkage also allows banks and other institutions to verify tax identities electronically without demanding additional documents from customers.
Highlighting the broader policy objective, Aderonke said the new Tax ID framework is intended to strengthen fairness in the tax system.
“The new Tax ID simplifies identity, reduces duplication, closes loopholes for tax evasion and ensures fairness so that everyone who earns taxable income contributes their share, while protecting non-taxable and low-income citizens,” she said.
Broader implementation linking tax identity to financial and regulatory transactions is expected to take effect from January 2026, in line with the NTAA’s rollout schedule.
The unified Tax ID initiative forms part of Nigeria’s wider fiscal reforms aimed at boosting revenue mobilisation, enhancing transparency and improving trust in the tax system.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
