Nigeria Revenue Service introduces mandatory unified tax ID for all taxpayers

The Nigeria Revenue Service (NRS) has announced the rollout of a mandatory Taxpayer Identification system for every taxable individual and organisation in the country as part of sweeping reforms aimed at modernising tax administration.

The initiative, which is being implemented in partnership with the Joint Revenue Board, was disclosed in a public notice released on Monday through the agency’s official X platform.

According to the NRS, the new policy derives its legal backing from Sections 6, 7 and 8 of the Nigeria Tax Administration Act, 2025, which makes it compulsory for all taxable persons to obtain a Tax ID.

The agency explained that the new system is intended to create a more coordinated and transparent tax structure across federal, state and local government 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 NRS stated.

“It is designed to consolidate taxpayer records, eliminate duplication, and ensure more efficient management of tax-related information,” it added.

Under the new arrangement, the Tax ID is expected to function as a centralised identity framework that harmonises taxpayer records nationwide and simplifies tax-related transactions.

The revenue authority said the initiative would make tax registration, filing and payment easier for individuals, businesses and organisations.

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

The NRS also maintained that the new digital framework would strengthen transparency and accountability in the country’s revenue collection system by improving the monitoring of taxpayer activities and reducing revenue leakages.

“The system will improve transparency by enabling better visibility and tracking of taxpayer records while reducing leakages and improving accountability in tax collection,” the agency stated.

“The framework will also harmonise taxpayer information across all levels of government,” it added.

As part of the transition, the NRS disclosed that the newly introduced Tax ID system would replace the existing Tax Identification Number Validation API currently being used by Ministries, Departments and Agencies, financial institutions and other service providers.

The agency directed organisations requiring integration and taxpayer validation services for individuals, business names and enterprises to contact the Standardisation and Modernisation Department of the Joint Revenue Board for access to the updated API infrastructure and integration procedures.

Corporate organisations seeking validation services for registered entities were also advised to engage the Tax Automation Department of the Nigeria Revenue Service for implementation guidelines.

The development forms part of broader efforts by tax authorities to digitise Nigeria’s revenue administration system, improve compliance and strengthen coordination between tax agencies across the country.

Officials say the reform is expected to close loopholes within the tax system, expand the national tax database and improve revenue generation through enhanced digital monitoring and harmonised taxpayer records.

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