The Federal Government has directed that all banking and allied financial services must henceforth require the provision of a valid Tax Identification Number (TIN) as part of customer transactions.
The new directive, announced by the Federal Inland Revenue Service (FIRS) on Thursday, is part of ongoing reforms aimed at broadening Nigeria’s tax base and improving compliance with existing tax laws.
According to the circular issued by the agency, banks, microfinance institutions, insurance companies, and other financial service providers are to ensure that customers present their TINs before opening new accounts, accessing certain loan facilities, or carrying out significant financial transactions.
FIRS Chairman, Dr. Zacch Adedeji, said the move was in line with the government’s strategy to enhance domestic revenue mobilization and reduce dependence on oil earnings.
“No Nigerian is exempt from civic responsibility, and paying taxes is central to nation-building. Linking financial services to tax identification will not only improve compliance but also help us build a more transparent and accountable system,” he said.
The development has, however, generated mixed reactions among Nigerians. While tax experts and policy advocates hailed the decision as a step toward curbing tax evasion, civil society groups and business owners warned that it could further restrict access to financial services for low-income citizens.
The Lagos Chamber of Commerce and Industry (LCCI), in its response, urged the government to pair the enforcement with simplified tax registration processes, especially for small and medium-scale enterprises (SMEs).
“Making TIN compulsory is good policy, but the process must be seamless. If not, it may discourage financial inclusion and drive more transactions into the informal economy,” the chamber warned.
Meanwhile, several commercial banks have already begun sensitizing customers on the need to update their records with valid TINs, even as questions remain on how the policy will affect existing account holders without tax registration.
Observers say the directive, if fully enforced, could mark a turning point in Nigeria’s tax system, but warn that the government must balance revenue drive with economic realities to avoid backlash.
