Kehinde Fajobi
A new bill proposed in Nigeria will require individuals involved in banking, insurance, stock-broking, and other financial services to provide a Tax Identification Number (TIN) before they can open a new account or continue using an existing one.
The bill, titled “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters”, aims to strengthen tax compliance and boost revenue collection across the country.
According to the document, obtained from the National Assembly and dated October 4, 2024, “A person engaged in banking, insurance, stock-broking, or other financial services in Nigeria shall make the provision of a tax ID, a precondition for opening a new account or operating an existing account.”
The bill is part of efforts to ensure that individuals and entities participating in financial activities are properly registered for tax purposes. It also mandates that non-resident individuals or companies supplying taxable goods or services in Nigeria, or earning income from the country, must register and obtain a TIN. However, non-residents earning only passive income from investments will not be required to register but must still provide relevant information to the tax authorities.
Furthermore, the proposed law empowers tax authorities to automatically register and issue TINs to individuals who fail to apply, with notification sent to the individual after registration.
Non-compliance could lead to penalties, with the bill stipulating a fine of ₦50,000 for the first month of failure to register, followed by ₦25,000 for each additional month.