As Nigeria prepares to implement its most sweeping tax reform in decades, the way individuals and businesses verify their identities is about to change forever.
The new Nigerian Tax Reform Acts (signed June 26, 2025) have redrawn the boundaries of compliance, making Tax Identification Numbers (TINs) just as important as BVN and NIN in identity verification.
But what’s this reform really about?
And why does it matter so much for financial institutions, fintechs, and businesses moving into 2026?
Let’s break it down.
What the New Nigerian Tax Law Is Really About
The 2025 reform package comprises four groundbreaking laws, signed by President Bola Tinubu and set to take effect January 1, 2026 :
- Nigeria Tax Act (NTA, 2025) – Consolidates and harmonises old income tax, VAT, and capital gains laws into a single code.
- Nigeria Tax Administration Act (NTAA, 2025) – Establishes modern processes for registration, return filing, and penalties, including mandatory TIN registration.
- Nigeria Revenue Service (Establishment) Act (NRSA, 2025) – Creates a unified Nigeria Revenue Service (NRS) to replace older agencies and strengthen enforcement.
- Joint Revenue Board (Establishment) Act (JRBA, 2025) – Enhances collaboration among federal, state, and local tax bodies.
These laws aim to simplify Nigeria’s previously fragmented tax regime and modernize compliance in the digital economy (NESG, 2025).
Key Highlights of the New Law
Under Section 4 of the Nigeria Tax Administration Act (NTAA):
“Every taxable person shall register with the tax authority and obtain a Tax Identification Number (TIN) for compliance. Financial institutions shall request a TIN from customers prior to designated transactions.”
— NTAA 2025, Section 4
A “taxable person” now includes:
- Individuals earning any form of taxable income
- Registered businesses (corporate and SMEs)
- Freelancers, consultants, and contractors
This means almost every financially active Nigerian will need a valid TIN to access or maintain certain financial services.
The Numbers Behind the Reform
According to a top-tier Auditing firm in Nigeria, this reform is projected to increase Nigeria’s tax-to-GDP ratio from 10% to about 18% over time, aligning the country closer to the global average.
Yet, the challenge is clear:
With over 38 million Nigerians still financially excluded, ensuring easy TIN registration and verification access is crucial to prevent people and small businesses from being locked out of the financial system.
What Happens from January 1, 2026?
Starting from January 1, 2026:
- Banks and financial institutions will require a TIN before customers can:
- Open or operate a bank account
- Access business loans or grants
- Make investments or file for government contracts
- Maintain insurance or pension accounts
- Companies that award contracts to vendors without valid TINs could face penalties of up to ₦5 million.
This signals a shift from simple identity checks to full compliance verification where TIN validation becomes a key component of due diligence.
Why This Matters for Verification
Until now, most verification systems in Nigeria focused primarily on BVN (Bank Verification Number) and NIN (National Identification Number), both essential for identity proof.
But under the new framework, identity verification alone is no longer enough.
Organizations must now ensure:
- The person or entity exists (identity verification)
- They are legally recognized for taxation (TIN verification)
- Their compliance history aligns with regulatory requirements (compliance verification)
This evolution strengthens transparency, combats fraud, and expands the country’s formal economy base.
The Bigger Picture, Why the Reform Matters
These tax laws aren’t just about revenue.
They’re designed to:
- Simplify tax rules and increase compliance
- Bring informal sector earners and digital workers into the formal economy
- Modernize Nigeria’s tax infrastructure
- Ensure greater transparency and fiscal coordination across all levels of government
As a top auditing firm report puts it, the reform is “a pivotal move towards a more sustainable, transparent, and technology-driven fiscal future for Nigeria.”
How Probe Compliance Keeps You Ahead
At Probe Compliance, we understand that compliance now goes beyond identity, it’s about credibility and trust.
That’s why our advanced verification solutions help you:
- Verify TINs instantly, ensuring tax compliance and validity
- Cross-check TIN, BVN, and NIN within one workflow
- Integrate automated due diligence tools into your systems
- Prevent penalties by confirming your clients, vendors, and partners are fully tax-compliant
- Build confidence in your AML, CFT, and onboarding processes
With Probe Compliance, you can verify identities and validate compliance seamlessly all in one platform.
Future-Proofing Your Compliance Before 2026
The future of compliance in Nigeria is changing and it’s happening fast.
As the 2025 Tax Reform Acts come into force, TIN verification will become the new standard for financial and business credibility.
Integrate TIN verification now and position your business as a compliance leader in the new regulatory era.
Grow fast. Stay compliant. Build trust with Probe Compliance.
Ready to verify smarter?
Visit www.probecompliance.com or contact us today to integrate TIN verification and more into your compliance workflow.