By Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that Tax Identification Numbers (TINs) are not mandatory for strictly personal bank accounts under Nigeria’s new tax framework. A TIN becomes compulsory only when a personal account is used for business transactions.
Oyedele made the clarification during an engagement with Pulsewire in Abuja at the weekend. He explained that individuals using personal accounts for business will be easily identified through digital monitoring linked to their Bank Verification Number (BVN).
“You need a tax ID if your bank account is used for business transactions. If the account is not used for business, you don’t need to attach a tax ID,” he said, noting that enforcement will be stringent. “If you don’t get your tax ID, the authorities will know.”
According to him, this requirement stems from the Finance Act 2020, which became operational in January 2020, and is now strengthened by digital intelligence tools capable of detecting business-related inflows and outflows, including income hidden in accounts belonging to spouses or children.
Oyedele said flagged patterns — such as multiple deposits from customers or transfers to suppliers — will alert authorities, leading to strict tax enforcement measures.
He added that some banks have already begun applying the rule, stressing that the measure is aimed at curbing tax evasion among high-income earners who divert business proceeds into personal accounts. He reiterated that low-income earners remain protected under the new progressive tax system, which exempts individuals earning up to N100,000 monthly from Pay As You Earn (PAYE) starting January 2026.
“If we agree that poor people should not pay tax, then let the system protect them. But wealthy individuals must not hide behind loopholes, otherwise everything collapses,” he said.
Oyedele also addressed widespread misinformation surrounding the new tax regime, particularly misleading claims circulating among young people about alleged 30 per cent capital market taxes.
He explained that recent capital market reforms are designed to boost participation and attract investment. Under the new structure, investors with annual portfolios or share sales below N150 million about 99 per cent of retail investors are exempt from capital gains tax. Foreign investors also enjoy tax exemptions on reinvested earnings, while bonus shares no longer attract withholding tax. Stamp duties on share transfers have been removed.
These reforms, he said, have resulted in significant inflows, with foreign portfolio investment reaching N2.1 trillion as of October 2025.
Despite this progress, Oyedele noted that young Nigerians continue to invest heavily in cryptocurrencies estimated at $60 billion instead of exploring the more stable and tax-advantaged capital market.
“Young people, leave crypto. The capital market gives better returns and is tax-exempt. Even $20 billion redirected from crypto into the market would change our story,” he urged.
Reflecting on the state of the economy in May 2023, Oyedele said the administration inherited a near-collapse situation marked by depleted reserves, unsettled FX forward obligations, suspended airline operations, and oil theft that dragged production below one million barrels per day. Government revenue had dropped below 10 per cent of GDP, while inflation was fuelled by heavy deficit financing.
He stated that reforms including FX market adjustments, petrol subsidy removal, and tax restructuring have reversed the economic decline. The country now records over $7 billion in trade surpluses, oil production has risen to 1.7 million barrels per day including condensates, and the CBN has been a net forex buyer for 10 consecutive months. Domestic card spending limits have also been restored up to $6,000.
Oyedele highlighted further benefits for businesses under the new tax laws, including a reduction of Company Income Tax to 25 per cent, zero-rating of essential goods such as food, health, education, transport, and rent, and expanded input VAT credit to cover services and operational items such as vehicles, equipment, and airtime.
He advised businesses to strengthen documentation ahead of the January 2026 rollout, warning that VAT credits and refunds will only be granted with proper records. Refunds are expected within 30 days, while false claims attract a 200 per cent penalty.
The reforms also phase out minimum tax for non-profitable companies and introduce a simplified single-digit tax and levy structure nationwide.
