Tax ID Rules: What Nigerians Must Know About TINs on Personal Accounts Before January 2026
- The Nigerian government has clarified the truth about Tax Identification Numbers (TINs) linked to personal bank accounts
- The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made the clarification recently
- He said TINs are mandatory when a personal account is used for business transactions
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has clarified that Tax Identification Numbers (TINs) are not required for strictly personal bank accounts under the new tax reforms.
TINs become mandatory only when an account is used for business transactions, the Presidential Committee on Fiscal Policy and Tax Reforms confirmed.
Source: Twitter
Chairman Taiwo Oyedele explained that authorities can detect business activity in personal accounts through Bank Verification Number (BVN) patterns, urging individuals to conduct self-assessment.
“You need a tax ID for your bank account if that account is used for business. If you don’t get a tax ID, because we have your BVN, we can find out,” he said.
Detecting hidden business transactions
The new measure targets those funneling business income into personal accounts to evade taxes.
Patterns such as multiple inflows from customers and outflows to suppliers can flag an account as a business account.
“When the system detects that pattern, the authorities will know, and the tax man will come, and it will not be friendly,” Oyedele warned.
Bank officials told Legit.ng that, some banks are already enforcing this proactively.
The rules stem from the 2020 Finance Act but gain strength through digital intelligence, allowing authorities to track evasion even in accounts of spouses or children used to hide income.
Protecting low earners, targeting high incomes
The reforms are progressive, exempting low earners (up to N100,000 monthly) from Pay As You Earn (PAYE) starting January 2026 while ensuring higher-income earners are taxed fairly.
Oyedele emphasized, “If we agree that poor people should not pay, let them not pay… Don’t allow rich people to hide, because the system will collapse.”
Investor-friendly capital market reforms
Contrary to misinformation circulating online, the government has introduced reforms to support small investors.
Portfolios and share sales under N150 million are exempt from capital gains tax, covering about 99% of retail investors.
Bonus shares no longer attract withholding tax, stamp duties on share transfers have been removed, and reinvestments by foreign investors are exempt, all aimed at promoting long-term investments.
Oyedele said that these reforms have already encouraged foreign portfolio inflows into the Nigerian capital market, reaching N2.1 trillion as of October 2025.
Oyedele urged young Nigerians to move from crypto to equities, citing tax exemptions and superior returns.
Economic recovery and tax overhaul
According to a report by Leadership, Nigeria inherited a challenging economy in May 2023, with foreign reserves below $4 billion, unpaid FX contracts over $7 billion, and declining oil output due to theft.
Inflation surged after excessive money printing, but reforms including FX flotation, subsidy removal, and tax overhaul have stabilized the economy.
Oil production has rebounded to 1.7 million barrels per day, theft has dropped to 5%, and the CBN has been a net forex buyer for ten months.
The new tax system introduces progressivity, reducing burdens for 98% of earners and slightly increasing taxes only for high-income brackets.
VAT, CIT, and business relief
Essentials such as food, health, education, transport, and rent are now zero-rated, allowing full VAT refunds on production costs.
Businesses benefit from a 25% reduction in Company Income Tax (CIT), and input VAT credits extend to services.
Oyedele advised firms to maintain proper records to claim these credits efficiently.
Source: Twitter
Additional relief includes cash-basis VAT/withholding tax remittance, 30-day refunds, exemption of bad debts until payment, no minimum tax unless profitable, and harmonized single-digit taxes and levies.
Key takeaway
From January 2026, Nigerians must self-assess their bank accounts for business activity, while investors and businesses enjoy meaningful reliefs and incentives.
The new tax regime aims to promote compliance, fairness, and economic growth, creating a more transparent system for personal accounts, capital markets, and businesses.
New tax law replaces reliefs with rent-based deductions
Legit.ng earlier reported that the federal government has overhauled Nigeria’s personal income tax structure by eliminating the consolidated and personal relief allowances and replacing them with a new rent-based deduction capped at N500,000.
This reform is contained in the newly enacted Tax Act, which redefines how taxable income is calculated for individuals.
According to the Act, taxable income now comprises profits from business, employment, investments, and capital gains, with total income computed after all approved deductions are removed.
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Source: Legit.ng
