The Federal Inland Revenue Service (FIRS) has confirmed that the National Identification Number (NIN) will now automatically serve serve as a Tax Identification Number (Tax ID) for Nigerian citizens and residents, a move aimed at simplifying tax compliance and enhancing revenue administration.
The announcement, made on Tuesday, underscores the government’s efforts to modernize tax systems, reduce duplication, and enhance the ease of doing business for individuals and enterprises across the country.
Under the new directive, every Nigerian with a NIN will automatically be issued a Tax Identification Number (Tax ID) once the NIN is validated by FIRS. This eliminates the need for separate applications for tax identification, streamlining processes for taxpayers and reducing administrative bottlenecks.
“This integration of NIN with Tax ID is a significant step toward harmonizing identity and tax systems,” the FIRS statement said. “It will simplify tax registrations and ensure better compliance across different segments of the economy, including businesses of all sizes.”
Benefits for Individuals and Businesses
According to FIRS officials, using NIN as the tax ID will benefit individual taxpayers, startups, and MSMEs by:
- Reducing duplication of records, taxpayers no longer need separate applications for NIN and Tax ID.
- Speeding up tax registration and compliance for businesses and self-employed professionals.
- Improving access to finance and government programs that require tax identification as part of eligibility checks.
FIRS said the measure will also enhance transparency in tax administration, support better data analytics, and reduce fraud linked to multiple tax registrations.
What MSMEs Should Do
Small business owners and entrepreneurs are encouraged to ensure their NIN records are accurate and up to date with the National Identity Management Commission (NIMC). Once the NIN is validated, it will automatically serve as the Tax ID, eliminating the need for a separate Tax Identification Number application with tax authorities.
Experts say the integration is particularly significant for MSMEs and startups, which often struggle with administrative hurdles in registration and compliance. A harmonized identity and tax system reduces time and cost for business owners, enabling them to focus more on growth and innovation.
Looking Ahead
FIRS also noted that this initiative aligns with broader government reforms to streamline business registration, improve revenue mobilization, and strengthen Nigeria’s fiscal architecture.
As Nigeria continues to adopt digital solutions to reduce barriers to tax compliance, this integration of NIN as the default Tax ID marks a significant milestone in enhancing both individual and corporate engagement with the tax system.
