The FIRS has confirmed that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) has now automatically become the Tax Identification Number (TIN) for individual Nigerians.
If you scrolled past that update yesterday thinking it was just another routine bureaucratic tweet, you might want to scroll back. The Federal Inland Revenue Service (FIRS) didn’t just make an announcement; they have launched a significant digital infrastructure project that has been in development for years.
This change marks a significant shift in how we approach taxation. For years, we talked about increasing the number of taxpayers and held many discussions about including the informal sector. Now, with this action, the debate about finding taxpayers is over. Here is the deep dive into what this actually means and the numbers behind it.
The New Reality: Your Identity Is Your Tax Profile
Let’s simplify what the FIRS said in their campaign. They made two complex processes much easier:
- For Individuals: If you have a National Identification Number (NIN), you automatically have a Tax Identification Number (TIN). You no longer need to go to an FIRS office to apply for a TIN.
- For Businesses: If your business is registered with the Corporate Affairs Commission (CAC), your Registration Number (RC) is your Tax ID. From the moment your business starts, you are also recognised as a taxpayer.
This change supports the new Nigeria Tax Administration Act (NTAA). It aims to unify our disconnected identity system.
Why Now? The Data Game
To understand why this is happening, you have to follow the data.
For decades, Nigeria has struggled with a significant data problem. We have over 70 million people who are able to work. However, only a small number of them pay taxes, mainly formal employees whose taxes are deducted directly from their salaries.
In the past, the tax authority had to search for people to get them to register. Most people didn’t register unless they needed a Tax Clearance Certificate for a government contract.
Now, things are changing. By using the NIMC database, the FIRS can reach more people quickly. As of late 2025, the NIMC has issued more than 123.9 million National Identification Numbers (NINs). By making the NIN the default Tax ID, the FIRS doesn’t need to find you. If you are in the national identity database, you are also in the tax database.
Connecting the Dots
This is where the story gets interesting, especially for those who try to avoid paying taxes. It’s not just about providing a number; it’s about being clear.
Consider how the government has connected various parts of your life over the past few years:
- Your National Identification Number (NIN) links to your SIM card.
- Your NIN links to your Bank Verification Number (BVN).
- Your BVN links to every bank account you have.
By making the NIN your Tax ID, everything is tied together. This approach creates a complete view of your financial situation. If someone claims to have “zero income” on their tax forms, but their NIN-linked bank accounts show millions of Naira, the system can automatically spot that difference without needing an auditor to check in person.
Does “Identified” Mean “Taxed”?
Before we worry, let’s clarify something important that Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said many times.
Having a Tax ID does not mean you have to pay taxes. Just because your National Identification Number (NIN) is now a Tax ID, it doesn’t mean you automatically owe money.
- The Exemption: If you are a student, a dependent, or a low-income earner falling below the taxable threshold, you are still exempt.
- The Purpose: The system is designed to identify you, not necessarily to bill you. It separates the “who” from the “how much.”
For Business Owners: Finally, Some Ease
If you run a business, this is great news for you. We all know how frustrating Nigerian bureaucracy can be—solving one problem often leads to another.
Before, after getting your CAC certificate, you had to go through more steps to validate your Company TIN. Now, that step is removed. Your RC Number is now your key to the tax system. This change makes it easier to comply with tax requirements and eliminates the need for middlemen who used to charge fees to help people obtain a free Tax ID.
The Bottom Line
You don’t need to do anything today. You don’t need to fill out a form.
- If you have a NIN, you are in the system.
- If you have an RC Number, your business is in the system.
This is a move that finally brings Nigeria in line with developed economies like the US (where your Social Security Number is everything) and the UK (National Insurance Number). It is the end of hiding in the shadows, and the beginning of a data-driven, transparent tax culture.
