₦airaland Forum

You need a tax ID for your bank account if it is used for business transactions. If you are not using the account for business, you do not need to attach your tax ID

Tax Identification Numbers (TINs) are not required for strictly personal bank accounts under Nigeria’s new tax reforms; they become mandatory only if the account is used for business transactions, the Presidential Committee on Fiscal Policy and Tax Reforms has clarified.

Chairman of the tax reforms committee, Taiwo Oyedele, who made this known, advised bank customers to conduct a self-assessment, noting that authorities will be able to detect such use via Bank Verification Number (BVN) patterns.

Speaking during a session with the management of LEADERSHIP Newspaper in Abuja at the weekend, Oyedele said that individuals using personal bank accounts for business transactions must now obtain a TIN, adding that tax authorities leveraging BVN data can detect evasion patterns such as multiple random inflows from customers and outflows to suppliers.

“You need a tax ID for your bank account if that bank account is used for business transactions. If you are not using your account for business, you don’t need to attach your tax ID. If you don’t get your tax ID, the authorities will know.”

According to him, this requirement is rooted in the 2020 Finance Act, effective from 13 January 2020, and gains teeth through new digital intelligence that allows authorities to identify business activity in unregistered personal accounts — including those of spouses or children used to hide income — ensuring compliant taxpayers are not disadvantaged.

Oyedele stressed self-compliance: “You need a tax ID for your bank account if that bank account is used for business… If you know that you are using it for business, get a tax ID. If you don’t get a tax ID, because we have your BVN, we can find out,” he warned, adding that flagged accounts trigger unfriendly tax enforcement.

“So, different random people will be paying into the account. You would also be paying different random people, maybe your suppliers. When the system detects that pattern, the authorities will know that this is a business account, and the tax man will come to you — and it will not be friendly at that point, because it means you yourself have not been honest.”

He noted that some banks already enforce this proactively.

The measure, he explained, will combat evasion where individuals funnel business revenue into personal accounts to dodge taxes, undermining progressivity that exempts low earners (up to N100,000 monthly from Pay As You Earn (PAYE) starting January 2026) while targeting higher incomes fairly.

“If we agree that poor people should not pay, let them not pay… Don’t allow rich people to hide, because the system will collapse,” he said.

Oyedele lamented the high level of misinformation surrounding the new tax regime, scheduled to take effect from 1 January 2026.

“If you go on the street now and ask any young person, they will tell you there’s a 30 per cent tax in the capital market, because that’s what they’ve been told,” he said.

He highlighted significant reforms targeting the capital market aimed at boosting participation and attracting investments. These reforms exempt portfolios and sales under N150 million — which covers about 99 per cent of investors — from capital gains tax, encouraging small and medium investors to stay engaged in the market without tax burdens.

He further explained that if an investor’s portfolio or share sales in a year do not exceed N150 million, they are exempt from capital gains tax, thus providing relief to the vast majority of retail investors.
Additionally, reinvestments made by foreign investors are also exempt, fostering a culture of long-term investment rather than short-term speculative trading.

Bonus shares received by shareholders no longer attract withholding tax, while stamp duties on share transfers have been removed, further reducing transaction costs and encouraging trading activity.

He said these investor-friendly reforms have yielded tangible results, with foreign portfolio inflows into the Nigerian capital market reaching N2.1 trillion as of October 2025.

Oyedele noted that foreign investors had previously exited the market around 2022 but have begun to return in significant numbers due to these positive changes, reflecting growing confidence.
Despite these gains, he observed that the average age of investors remains 45, implying that younger Nigerians — who are currently heavily invested in volatile cryptocurrencies and stablecoins totalling about $60 billion — are missing out.

Oyedele urged youths to shift from crypto to equities in the capital market, citing superior 50 per cent dollar returns and tax exemptions now available.

He called this capital market shift a crucial pathway for financial growth and wealth creation for younger Nigerians.

“Young people, leave crypto. This is where to make more money. It is tax-exempt and the returns are better. If you can even clean just $20 billion of that virtual currency into the capital market, it will change our story.”

Oyedele detailed how Nigeria inherited a dire economic situation in May 2023 upon President Bola Tinubu’s inauguration, teetering on collapse with foreign reserves below $4 billion, over $7 billion owed on FX forward contracts, international cards unable to process even $20 subscriptions, and airlines such as Emirates halting flights due to repatriation issues.

Oil theft , he stated, had decimated onshore and shallow-water production by 80 per cent, dropping output below 1 million barrels per day, while NNPC subsidies exhausted equity crude, royalties, petroleum profits, and future production as collateral, leaving just 00,000 barrels unencumbered and risking fuel shortages by late 2023.

He said government revenue was under 10 per cent of GDP, with 7 per cent consumed by debt servicing, forcing N22.7 trillion in money printing plus N7 trillion interest — totalling N30 trillion — which ignited the inflation crisis.

According to him, reforms including FX flotation, PMS subsidy removal, and tax overhauls reversed the trajectory, achieving over $7 billion trade surpluses, with the CBN becoming a net forex buyer for 10 months, restoring card limits up to $6,000, and oil production at 1.7 million barrels per day (including condensate) with theft reduced to 5 per cent.

He further stated that the new tax laws introduce progressivity, exempting earners up to N100,000 monthly from PAYE entirely, reducing it for the N100,000–N1.8 million brackets (covering 98 per cent of Nigerians), with marginal increases only for higher incomes — addressing the pre-reform skew where 96 per cent of personal income tax came from formal corporates.

Essentials such as food, health, education, transport and rent will become zero-rated, allowing full VAT refunds on production costs to combat cost-push inflation:

“From January, this bottle of water becomes zero-rated… any VAT that you have incurred yourself to produce the water will be refunded — 100 per cent refund.”

He said businesses will gain from a 25 per cent Company Income Tax (CIT) reduction, with input VAT credits now extended to services.

“As LEADERSHIP, you have vehicles… your camera… even when you buy airtime on your phone now, from January next year, you can claim it back, because you use your phone for your business.”

Oyedele advised: “From January, you need to keep a proper record, because nobody gives you VAT credit because you said, ‘give me ID’. You have to provide documentation… So your finance people should be very, very busy now.”

He listed additional relief to include cash-basis VAT/withholding tax remittance (bad debts exempt until paid), 30-day refunds after netting input against output (with 200 per cent penalties for false claims), no minimum tax unless profitable, and harmonised single-digit taxes and levies.

https://leadership.ng/oyedele-tax-id-numbers-not-required-for-strictly-personal-bank-accounts/

different ID numbers its a shame that they cant be unified

He is changing his words too soon. I heard him saying 97% will exempted fro income taxes.

So will Asha**woops and hoookupss be required and open and register business accounts

Ok.

2026.

We await another round of merry-go-round with our banks as regards our details.

It is better to fine tune the details now and let the people be in the know before everyone starting forming Emperors on things they know little about.

Tax wahala loading in 2026.
May the Almighty God help us from this regime

That's the problem with people, especially Nigerians. When given small position they either abuse or over do to please their paying master even if their decision hurt the masses they don't mind.

Tax wahala loading in 2026.
May the Almighty God help us from this regime.
Benefits mentioned can never and only be felt be the few.

So according to this Tinubu's tax collector, anybody earning 100,000 naira monthly in Nigeria is rich?


Can you people see the wickedness of Tinubu and his APC just to tax Nigerians to extreme poverty?


If truly Tinubu meant well for Nigerians and wanted to tax only the rich, why didn't he peg it at those earning NGN500,000 and above? And 100million annual turnover for small businesses registered under business name?

These policies that are not clear cut,you just go to one country and copy their policies then bring to Nigeria.
Anyway some part of the country are known for not paying tax,some of these policies will bring them into the tax net

WHat a load of crap
So if I'm using different POS operators to withdraw from an account, it can conveniently be tagged as "paying suppliers" or what?
This tax thing will be the wood that will break the camel's back

The kind of problem this tax go bring eh

Plenty square peg in round hole

We are watching

Policy sumalsult , Nigerians are waiting for new year

Sirleo05:
That's the problem with people, especially Nigerians. When given small position they either abuse or over do to please their paying master even if their decision hurt the masses they don't mind.

You have said nothing.

You do not want to pay tax but you want your country to look like Dubai.

Nigeria Government has missed out so much on tax. Even religious places should be taxed.

If this country will grow, proper and robust tax needs to be in place which will generate revenue for the government

Kukutente23:
WHat a load of crap
So if I'm using different POS operators to withdraw from an account, it can conveniently be tagged as "paying suppliers" or what?
This tax thing will be the wood that will break the camel's back

That account will be taxed just once , not four different ways.

Pootle:
different ID numbers its a shame that they cant be unified

Different contracts to settle their paddies 😅

There was a time Patience Jonathan wanted to change plate numbers and make it compulsory for all vehicle users. One lawyer challenged the decision in court and won the case.
Meanwhile FRSC and Police were already extorting motorists without the then new plate numbers.
Do you know how much that can earn the contractor?
Imagine if it is say just 1000 Naira for 1million cars, that is 1 billion like that

I'm not against paying tax. What I'm against is having some set of people embezzle this tax money again. I no trust 9ja government. We dey pay road worthiness fee but our roads are bad.

Confused lots, there’s never been a better time to leave Nigeria than now. The next two years and maybe 6 will be worse.

The 25% company tax rate is quite high, considering there's also a withholding tax of 10% on dividends. That means a total tax of 32.5% in the event if none of the profits are reinvested.

Brendaniel:
It looks like Tinubu and his team don't have a direction, today they are going southward, tomorrow they are heading north, these whole Tinubu tax is beginning to look like a legalized fraudulent scheme, they say bandits and prostitutes will pay tax, that means na automatic deductions from their bank accounts be that which may apply to all Nigerians.

Or who in his reasonable mind would expect a terrorist or prostitute to walk into a bank and say they want to pay their taxes for prostitution or terrorism, straight forwardness and Tinubu are like word and opposite

Don't mind these unserious people

I have a gut feeling they will end up suspending that thing for politics sake

If it is well implemented, the north will be worst hit and we all know these guys are not ready to lose the northern votes for anything

Besides, as you rightly pointed out, who will expect a smuggler or a prostitute to willingly pay tax without being legally registered

MT:
You have said nothing.

You do not want to pay tax but you want your country to look like Dubai.

Nigeria Government has missed out so much on tax. Even religious places should be taxed.

If this country will grow, proper and robust tax needs to be in place which will generate revenue for the government

What about the aspect of the generated tax being looted

You guys talk as if the tax will work for the citizens as it happens in other countries

What benefit has subsidy removal brought for the average citizens?

It seems these guys derives joy in suffering the masses... From the beginning, it has been tax tax tax till this day we are still talking about tax. That is the only thing this government knows how to do

MT:
That account will be taxed just once , not four different ways.

Why should a personal bank account be taxed because I use it to transact POS

Do you even know what you're saying?

Another avenue created to steal more. Accountability is still an issue yet they want to tax us more

Oyedele want to scartter the brain of nairalanders. For better understanding and removing doubt watch this video: https://www.facebook.com/otokinie/videos/1757617328450455/?mibextid=rS40aB7S9Ucbxw6v

This is looking like it is going to be more messier than the BVN brouhaha..

I am a bit disappointed that the government is not doing enough to sensitize the public about this new rule.


I hope for a better Nigeria but why is the government making the system more complex?

We have NIN

We have BVN

And now Tax id,

(System is so porous, that they say online that non Nigerians can obtain these numbers with ease)

Why??

Kidnappers and bandits even have bank account.. how is the government using the already provided information to track them down

This here is the highest level of wickedness. Someone earning #100,000 per month in Nigeria is? I mean #100,000 naira o

franchasofficia:
So according to this Tinubu's tax collector, anybody earning 100,000 naira monthly in Nigeria is rich?


Can you people see the wickedness of Tinubu and his APC just to tax Nigerians to extreme poverty?


If truly Tinubu meant well for Nigerians and wanted to tax only the rich, why didn't he peg it at those earning NGN500,000 and above? And 100million annual turnover for small businesses registered under business name?

An anti people government that all it does is to impoverish its citizens.

“If you go on the street now and ask any young person, they will tell you there’s a 30 per cent tax in the capital market, because that’s what they’ve been told,” he said.

Hmm!
How many people are aware of this, or know what this statement means?

I need some clarification on all these talks about January 2026.

If the reforms kicks off in Jan. 2026, does that mean that taxable citizens will be required to file their tax returns around April, May or June 2027 for the 2026 tax year?

Taxes are paid annually and tax returns are filed annually for the Year just ended. So, are we expected to file in 2026 or 2027 for the year 2026?


Some Tax experts should provide answers please.