NRS Makes Tax ID Mandatory for All Taxpayers

The Nigeria Revenue Service has announced the introduction of a compulsory Taxpayer Identification (Tax ID) system for all taxable persons in the country as part of efforts to modernise Nigeria’s tax administration structure.

The initiative, which is being implemented in collaboration with the Joint Revenue Board, was disclosed in a public notice issued on the agency’s official X handle on Monday.

According to the NRS, the new policy is backed by Sections 6, 7, and 8 of the Nigeria Tax Administration Act, 2025, which makes it mandatory for every taxable individual or business entity to obtain a Tax ID.

The agency explained that the Tax ID would function as a unified identity for taxpayers nationwide, enabling easier interaction with tax authorities at both federal and state levels.

“The Tax ID will serve as a single, unified identity for all taxpayers, enabling seamless interaction with tax authorities at both federal and sub-national levels,” the agency stated.

It added that the new framework is designed to consolidate taxpayer records, eliminate duplication, improve accountability and enhance transparency within Nigeria’s tax system.

According to the NRS, the reform will simplify tax-related processes such as registration, filing and payment while helping to reduce revenue leakages across government institutions.

“The initiative will simplify tax compliance processes, including registration, tax filing and payment procedures,” the statement noted.

The agency further explained that the Tax ID system would replace the existing Tax Identification Number (TIN) Validation API currently used by Ministries, Departments and Agencies, financial institutions and other organisations.

To ensure a smooth transition, organisations requiring validation and integration services for individuals, enterprises and business names were directed to contact the Standardisation and Modernisation Department of the Joint Revenue Board for access to the new API and implementation guidelines.

Similarly, institutions handling corporate entity verification were advised to liaise with the Tax Automation Department of the NRS.

The revenue authority said the reform forms part of broader government efforts to strengthen tax compliance through digital systems, improve efficiency in revenue collection and build a more transparent national tax database.