The Nigeria Revenue Service (NRS) has announced the rollout of a unified Taxpayer Identification (Tax ID) system for individuals and businesses, in a major reform aimed at modernising tax administration and improving revenue collection across the country.
The initiative, developed in collaboration with the Joint Revenue Board (JRB), is backed by provisions of the Nigeria Tax Administration Act, 2025. It is designed to replace the existing fragmented system with a single digital identifier for all taxpayers across federal, state, and local tax authorities.
According to a joint statement, the new Tax ID system will simplify registration, filing, and payment processes while improving transparency, efficiency, and data integration within Nigeria’s tax structure. Officials said it will also help eliminate duplication of taxpayer records and reduce revenue leakages.
Under the new framework, an individual’s National Identification Number (NIN) will automatically serve as the basis for their Tax ID, while registered businesses will use their Corporate Affairs Commission (CAC) registration numbers. Taxpayers will be able to access their 13-digit Tax ID through an online portal without undergoing a fresh registration process in most cases.
The NRS said the reform is part of broader efforts to build a fully digital tax ecosystem that supports economic growth and strengthens fiscal planning. It added that the system will improve coordination between tax agencies and enhance compliance monitoring nationwide.
Officials explained that the Tax ID will be required for key financial and commercial activities, including opening bank accounts, accessing financial services, and securing government contracts. However, they clarified that there will be no immediate penalties during the initial implementation phase.
The agencies also noted that non-taxable individuals, such as students and dependants, will be exempt from the requirement.
Following recent reforms that transformed the Federal Inland Revenue Service into the NRS and the Joint Tax Board into the JRB, authorities said the new system represents a major step toward a more efficient and technology-driven tax administration framework.
Analysts say the unified Tax ID could significantly expand Nigeria’s tax base, improve compliance, and boost the country’s tax-to-GDP ratio by integrating fragmented databases and enhancing monitoring of economic activities.
The NRS maintained that the reform aligns with global best practices and positions Nigeria for a more transparent, accountable, and digitally driven revenue system.
