FIRS Clarifies Tax Rules: NIN and BVN Now Sufficient for Banking Operations
The Federal Inland Revenue Service (FIRS) has firmly debunked reports suggesting that Nigerians without a Tax Identification Number (TIN) cannot open or operate bank accounts, describing such claims as misleading and unnecessary alarm.
Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the FIRS Executive Chairman, Zacch Adedeji, explained that Nigeria’s tax administration framework has been modernized to integrate seamlessly with existing national databases. This ensures that individuals and organizations are automatically identifiable for tax purposes—without requiring a separate or fresh application process.
According to Atoyebi, the TIN, a 13-digit statutory code, is not an additional barrier but a built-in tool that encodes key data such as the year of issuance, registry source (NIN for individuals or RC Number for businesses), state of registration, and security features. Importantly, for individuals, the TIN is already linked to their National Identification Number (NIN). For corporate bodies, the TIN is tied directly to their CAC-issued RC Number. Partnerships, cooperatives, and professional bodies are equally covered through their recognized registries.
This innovation guarantees that when Nigerians provide their NIN or RC Number for banking or Know Your Customer (KYC) checks, the system automatically retrieves their TIN in real-time. In effect, presenting a valid NIN at a bank means a citizen is already tax-compliant.
Atoyebi highlighted the multiple benefits of this system:
Ease of Banking: Citizens can open accounts using only their NIN or RC Number.
Fraud Prevention: Duplicate and false identities are eliminated.
Regulatory Confidence: Banks and regulators rely on one unified, verified source.
Inclusivity: Coverage extends beyond individuals and companies to cooperatives and professional associations.
Global Alignment: Nigeria’s tax system now mirrors international best practices, strengthening trust and financial integration.
She emphasized that this framework should be viewed not as a bureaucratic burden but as a gateway to financial inclusion, transparency, and global compatibility in Nigeria’s evolving digital economy.
With this clarification, FIRS reiterates its commitment to building a modern, citizen-friendly tax administration system that fosters trust, simplifies compliance, and drives inclusive economic growth.
Credit: iReporter Online