Do You Need a Tax ID to Open a Bank Account in Nigeria? Here’s the Truth

• Nigerians are surprised by the newly introduced Tax Identification Number, which is a requirement for opening and operating bank accounts
• The new law, which will begin soon, requires taxable Nigerians to have Tax IDs to operate or own bank accounts
• A tax expert, Aderonke Atoyebi, clarifies the new law and debunks some of the misconceptions surrounding it

Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.

In recent debates about Nigeria’s sweeping tax reforms, a widespread misconception has taken hold: that citizens without a Tax Identification Number (TIN) cannot own or operate a bank account.

This idea has caused panic for individuals and business owners alike, but it is inaccurate.

The reality is that Nigeria’s tax system has been re-engineered to work seamlessly with national registries like the National Identity Management Commission (NIMC) and the Corporate Affairs Commission (CAC).

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Rather than acting as a barrier, the TIN is an automated identifier that simplifies compliance without requiring additional paperwork from citizens.

What exactly is a TIN?

The Tax Identification Number (TIN) is a 13-digit unique identifier for every taxable person and entity in Nigeria. It encodes vital details such as:

• The year of issuance
• The source registry (e.g., NIN for individuals, RC for companies)
• The state of registration
• A security fragment and check digit

Importantly, the TIN is not something you need to manually apply for to access banking or financial services. Instead, it acts as a back-end tool for the government, banks, and regulators to identify taxpayers uniquely.

TIN and NIN: How individuals are covered

For individuals, the TIN is automatically linked to their National Identification Number (NIN).

When you provide your NIN, for example, during bank account opening or Know Your Customer (KYC) checks, the system cross-checks the information in the national database.

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As part of this real-time process, your TIN is automatically retrieved and attached to your records.

This means that even if you have never seen your TIN, the system already ensures that you are tax-compliant.

You can walk into a bank with only your NIN and still open an account.

TIN and CAC: How businesses are covered

For companies, the TIN is directly tied to the RC Number issued by the Corporate Affairs Commission.

Similarly, partnerships, cooperatives, professional bodies, and other legal entities have their TINs connected to their respective recognised registries.

This design allows businesses to operate transparently, with banks and regulators able to confirm tax compliance without demanding additional paperwork beyond the RC Number.

Why the integrated TIN matters

The automated TIN framework offers significant benefits:

• Seamless Banking Access: Citizens and businesses can operate bank accounts with NIN or RC Numbers, while TINs run in the background.
• Fraud Reduction: Linking TINs to foundational IDs reduces identity duplication and false registrations.
• Regulatory Compliance: Banks gain a unified, verifiable source of truth for KYC and reporting.
• Inclusivity: Associations, trustees, and professional bodies are all covered.
• Global Compatibility: Nigeria’s system can integrate with international financial and trade platforms.

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Clearing the misconception

The belief that Nigerians cannot open or operate bank accounts without a tax ID fails to recognise how the new framework works.

TINs are now seamlessly integrated into existing identity systems, not an extra hurdle.

In practice, a Nigerian walking into a bank with their NIN is already tax-compliant. The bank’s system simply retrieves its TIN during the onboarding process.

Far from shutting people out, the TIN is a gateway to financial inclusion, regulatory transparency, and global interoperability.

As Nigeria transitions into a digital economy, this streamlined system ensures that citizens and businesses can participate fully—without unnecessary barriers.

Items exempted from new VAT law

Legit.ng earlier reported that President Bola Tinubu has signed a sweeping tax reform into law, exempting several items from the 7.5% value-added tax (VAT).

The Nigeria Tax Act, part of four major fiscal bills signed on June 26, 2025, is designed to reduce the cost burden on citizens and stimulate growth in strategic sectors.

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The law is expected to take effect on January 1, 2026, and will be implemented by the newly established Nigeria Revenue Service (NRS), which replaces the Federal Inland Revenue Service.

Source: Legit.ng