How To Apply for Tax ID Number Easily As FG Makes It Requirement To Operate Bank Account

• Nigerians who earn income will need a Tax ID to operate bank accounts, the federal government has declared
• The new tax law will kick from January 1, 2026 and will only exempt students and other non-income earners
• The process to apply for the TIN has been revealed it is free with no biometrics, no physical card

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The federal government has released a simple guide on how to get a Tax Identification number after growing public concern about its use for bank accounts from January 1, 2026.

Taiwo Oyedele the chairman of Presidential Fiscal Policy and Tax Reforms Committee has noted that banks must request tax ID from taxable income earners for bank accounts.

He however explained that the requirement is not new as it has existed since the Finance Act 2020, which amended Section 49 of the Personal Income Tax Act, mandating taxable persons to provide a Tax ID for banking transactions.

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Oyedele explained that A taxable person is anyone who earns income through trade, business, or any form of economic activity.

"This means banks are required to request a Tax ID from individuals who earn income. Those who do not earn income such as students, dependents, or unemployed individuals are exempt."

4 Easy Steps to Apply for a Tax ID

The committee chairman noted that “Tax ID” is now used as a unified term to replace the previous mix of identifiers issued by the FIRS, Joint Tax Board, and state tax authorities. In future, a person’s NIN (for individuals) and CAC registration number (for companies) will serve as their Tax ID, reducing duplication, Punch reports.

Here is how to obtain Tax ID

1. Visit the JTB Portal – Go to tin.jtb.gov.ng.
2. Select the section applicable
3. Enter Your NIN – For individuals, your National Identification Number serves as your Tax ID under the new harmonised system.
4. Fill in Basic Information – No biometrics or physical card is required.
5. Submit and Receive Tax ID

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The process is free. Nigerians can also apply at FIRS, State IRS, or JTB offices and Individuals who already have a TIN do not need a new Tax ID, as existing TINs remain valid.

Businesses and Diaspora Nigerians

The tax rule applies to businesses as well. Small unregistered businesses can use their personal Tax ID, while incorporated companies automatically receive a TIN upon registration with the Corporate Affairs Commission.

Older companies registered before automation can obtain or validate their TIN through FIRS offices or online.

Nigerians in the diaspora who operate bank accounts for business or income in Nigeria can also obtain a Tax ID using their NIN on the JTB platform. Accounts not used for income are exempt.

Foreign companies doing business in Nigeria must obtain a Tax ID unless they earn only passive income such as dividends or royalties. Firms effectively managed from Nigeria are treated as residents and must comply using the same process.

No plans to debit bank accounts directly for tax

Earlier, Legit.ng reported that the federal government has clarified that the new tax reforms taking effect in January 2026 will reduce, not increase, the tax burden for most Nigerians.

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Taiwo Oyedele noted that, contrary to some reports suggesting new taxes are coming, individuals, small businesses, and large corporations stand to benefit under the revised laws.

He explained that individuals in the bottom 98% of income earners will pay less or no tax, while VAT on essential items such as food, education, and healthcare will be removed, lowering the cost of living.

Source: Legit.ng