FG: Please, Don’t Throw Nigerians Into Another Round Of Confusion over Tax ID Policy -By Isaac Asabor

The Federal Government’s recent announcement that from January 1, 2026, no Nigerian or non-resident will be able to open or operate a bank account without a Tax Identification Number (Tax ID) has once again thrust citizens into a familiar state of apprehension. On the surface, the policy is intended to strengthen Nigeria’s tax administration, widen the revenue net, and bring the country closer to global best practices. Indeed, with dwindling oil revenues and mounting fiscal pressures, the need to boost internally generated revenue cannot be denied.

However, Nigerians have every reason to approach this new directive with skepticism. This is not the first time government has unveiled a sweeping policy with far-reaching implications for everyday life, only for poor planning, weak infrastructure, and lack of proper sensitization to throw citizens into unnecessary confusion and hardship. The bitter memories of the Naira Redesign Policy, National Identification Number (NIN) saga and the earlier Bank Verification Number (BVN) exercise remain fresh in the public mind. If those experiences are anything to go by, the new Tax ID policy risks becoming another nightmare if government does not tread carefully.

According to the Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu on June 26, 2025, every taxable person must register with the relevant authority to obtain a Tax ID. The rule extends beyond banking to insurance, stock market transactions, and contracts with federal and state governments. Non-residents supplying taxable goods and services to Nigerians are also covered, while government ministries, departments, and agencies at all levels are expected to secure their own Tax IDs.

The law even empowers tax authorities to assign Tax IDs unilaterally to those who fail to apply, or to reject applications based on “available information.” In cases where businesses shut down, their Tax IDs will either be marked dormant or deregistered.

On paper, this is neat. It suggests a government eager to streamline its tax system and ensure compliance. Yet the distance between legislation and implementation in Nigeria is often like night and day. The Tax ID mandate, as announced, risks exposing ordinary Nigerians to another round of bureaucratic chaos, confusion, and ultimately, despair.

The NIN exercise was perhaps the most glaring example of how not to roll out a national identification policy. Nigerians were ordered to link their phone numbers to NINs or risk being cut off from mobile services. Deadlines were set, extended, and reset multiple times. Enrollment centers were overcrowded, citizens queued for hours under the sun, servers crashed constantly, and many were left stranded for months. Despite the chaos, government agencies insisted on deadlines that were clearly unrealistic.

The BVN exercise before it followed a similar pattern, though it eventually stabilized. Still, the process was riddled with poor communication, lack of infrastructure, and panic-driven compliance. Millions of Nigerians scrambled to meet deadlines because government failed to design a smooth, citizen-friendly transition.

These were not just inconveniences; they were direct assaults on the dignity and time of Nigerians. Businesses suffered, productivity dipped, and citizens were left with a bitter taste of government’s insensitivity. To announce another sweeping policy like the Tax ID requirement without demonstrating readiness to avoid such pitfalls is to risk a repeat of history.

One major concern with the new policy is the risk of worsening financial exclusion. Nigeria already struggles with bringing its large informal sector into the banking system. Millions of Nigerians in rural areas remain unbanked or under-banked due to distance, lack of awareness, or distrust in financial institutions.

Introducing another bureaucratic hurdle, that one must first obtain a Tax ID before opening or operating a bank account, could discourage many from seeking banking services altogether. Instead of promoting financial inclusion, the policy may push more people back into cash-only transactions, undermining years of effort by the Central Bank and financial institutions to digitize the economy.

At a time when government should be finding creative ways to make financial services more accessible, erecting new barriers is counterproductive.

Beyond statistics and economic theory, there is the human side of this policy. Nigerians are grappling with soaring inflation, rising fuel prices, insecurity, and a general erosion of purchasing power. For many families, survival is already a daily struggle. To add another layer of bureaucratic stress, queuing at registration centers, grappling with poor connectivity, or being locked out of their bank accounts due to missed deadlines, would only worsen public despair.

Policies, no matter how noble their intentions, should not come at the expense of human dignity. The hallmark of governance is not just what is done but how it is done.

If the Federal Government is serious about making this policy work without inflicting undue pain, certain steps are non-negotiable:

Firstly is early and sustained sensitization: To achieve the foregoing step, the federal government should make Nigerians understand the purpose of the Tax ID, how to obtain it, and how it will impact their lives. Government must communicate in plain language, across multiple platforms, and in local dialects, not through ambiguous press releases buried in the pages of official gazettes.

Secondly, it is expedient the process is decentralized and driven by accessible registration. With this,  Tax ID enrollment centers should not be confined to major cities. Local governments, banks, and even post offices can be empowered as registration points. Not only that, mobile registration units should serve rural areas to ensure no Nigerian is left behind.

Thirdly, Rollout should be phased, not shock therapy. In fact, rather than imposing a hard deadline, the rollout should be phased with sufficient grace periods. Citizens should not be punished for government’s own administrative weaknesses.

Fourthly, there should be an exigent need to leverage Existing Databases.  The government already holds massive amounts of biometric and identification data from BVN and NIN. Instead of subjecting citizens to fresh registration hurdles, these should be integrated into the Tax ID system to ease the transition.

Above all, there should be transparency and accountability in the process.  The tax authorities must assure citizens that this policy is not just another avenue for harassment or extortion. Feedback channels, complaints desks, and strict monitoring must be put in place to build public trust.

There is no denying the fact that Nigeria needs to reform its tax system. The over-reliance on oil revenue is unsustainable, and broadening the tax base is a step in the right direction. However, the success of such reforms hinges not just on policy design but on implementation. If history is any guide, Nigerians have every reason to worry. The NIN and BVN rollouts exposed a pattern of government insensitivity to the realities of its people. The new Tax ID requirement risks being no different, unless urgent steps are taken to avoid past mistakes.

Government must understand that reforms are not measured only by revenue targets or compliance statistics but by the lived experiences of citizens. Nigerians deserve policies that are efficient, transparent, and humane. Anything less will not only breed confusion and despair but also deepen the distrust between government and the governed.

This is not the time to throw Nigerians into another round of chaos. It is the time to prove that reform can be pursued without sacrificing the people’s well-being.