The Federal Inland Revenue Service has announced that there will be major changes concerning tax identification. From January 2026, all Nigerians will henceforth use the National Identification Number to identify themselves for tax purposes. Business organizations will use the Corporate Affairs Commission Registration Number.
This move eliminates the need for separate Tax Identification Numbers. Additionally the agency clarifies that no physical tax cards exist. Individuals and businesses simply link existing NIN or CAC details to their tax profiles. Officials state this aligns with the new Nigeria Tax Administration Act.
Reasons Behind the Reform
FIRS aims to simplify tax processes. The change unifies all previous tax IDs from federal and state levels. As a result, taxpayers avoid duplicate registrations and reduce paperwork.
Furthermore this supports broader tax compliance. Banks now require Tax IDs for accounts, pushing more people to register. Experts predict easier revenue collection for the government.
Effect on Individuals and Businesses
Citizens with NINs automatically acquire tax readiness. They connect accounts without further action required. Those without must sign up in order to comply.
However businesses enjoy simplified procedures. CACs instead of old TINs reduce paperwork. Small businesses, in particular, appreciate this simplicity.
Public Reactions and Concerns
Most Nigerians welcome the simplification. Social media users react with relief over reduced red tape. However some users show concern over data privacy issues as well as implementation hitches. Moreover, others question preparedness levels for the 2026 targets. They want FIRS to sensitize Nigerians more.
Looking Ahead
FIRS promises smooth transitions. The agency plans awareness campaigns. In conclusion, this reform modernizes Nigeria’s tax system and boosts economic growth.
