Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms has clarified that Tax Identification Numbers (TINs) are not required for personal bank accounts, unless those accounts are used for business-related transactions. The clarification follows widespread public confusion and misinformation surrounding the upcoming tax reforms taking effect on January 1, 2026.
Committee chairman Taiwo Oyedele made the clarification during a meeting with the management of LEADERSHIP Newspaper in Abuja, stressing that individuals using personal accounts strictly for private, non-commercial purposes do not need a TIN.
However, he warned that anyone routing business income through personal accounts must obtain a TIN and that tax authorities can now detect business activity automatically through Bank Verification Number (BVN) data analytics.
BVN Patterns Will Reveal Business Transactions
According to Oyedele, digital intelligence tools enable authorities to identify tax evasion patterns, even when business funds are channelled through accounts belonging to spouses or children.
“When the system detects that pattern, the tax man will come to you and it will not be friendly,” he cautioned.
Some banks, he added, have already begun enforcing the requirement proactively.
Measure Targets Evasion, Not Low-Income Earners
The committee stressed that the reform is designed to ensure fairness by preventing high-income earners from hiding taxable revenue in unregistered personal accounts. Meanwhile, low-income earners will face no new burden.
Starting January 2026:
Nigerians earning up to ₦100,000 monthly will pay zero PAYE.
More than 98% of taxpayers will fall into reduced or unchanged tax brackets.
Only high-income earners will see marginal adjustments.
“If we agree that poor people should not pay, then let them not pay… Don’t allow rich people to hide,” Oyedele said.
Capital Market Reforms Deliver Strong Returns
Oyedele highlighted sweeping capital market reforms aimed at attracting investment and boosting participation:
No capital gains tax on portfolios or share sales below ₦150 million per year
Reinvested foreign capital is tax-exempt
Bonus shares exempt from withholding tax
Stamp duties on share transfers removed
These policies have helped drive ₦2.1 trillion in foreign portfolio inflows into the Nigerian market as of October 2025.
However, Oyedele noted that the average investor age remains 45, urging young Nigerians to shift from volatile cryptocurrencies toward equities with better returns and tax incentives.