The Role of Taxpayer Identification Number (TIN) under the Nigeria Finance Act 2019.


The Taxpayer Identification Number (TIN) is a unique identifier assigned to individuals and businesses for tax purposes. It plays a pivotal role in modern tax administration, enhancing transparency, accountability, and compliance. In Nigeria, the Finance Act 2019 introduced reforms that significantly underscore the importance of the TIN system in the country’s tax framework. In this article, we will explore the key role of the Taxpayer Identification Number (TIN) under the Nigeria Finance Act 2019 and its implications for taxpayers.

1. Mandatory TIN Requirement for Transactions: One of the central provisions of the Finance Act 2019 is the requirement for individuals and businesses to provide their TIN when engaging in various transactions. These transactions include opening and operating bank accounts, registering vehicles, obtaining licenses, and conducting business transactions with government agencies. The TIN serves as a primary means of identifying taxpayers and tracking their financial activities.

2. Facilitating Taxpayer Compliance: The TIN system is a powerful tool for promoting taxpayer compliance. By linking transactions to specific TINs, tax authorities can monitor financial activities more effectively. This helps deter tax evasion and encourages individuals and businesses to meet their tax obligations promptly.

3. Streamlining Tax Refunds and Credits: Under the Finance Act 2019, taxpayers can use their TINs to claim tax refunds and credits more efficiently. This streamlines the process of receiving refunds for overpaid taxes or claiming tax credits, reducing administrative burdens for both taxpayers and tax authorities.

4. Enhancing Data Accuracy: The TIN system contributes to the accuracy and integrity of taxpayer data. It helps prevent multiple registrations and ensures that individuals and businesses have a single, consistent tax identity. This, in turn, reduces errors in tax assessments and enhances the overall efficiency of tax administration.

5. Strengthening the Formal Economy: By requiring TINs for various financial and business transactions, the Finance Act 2019 encourages the formalization of economic activities. This shift from the informal to the formal economy enables the government to expand its tax base and generate additional revenue for public services and development.

6. Improving Access to Financial Services: Having a TIN can also improve individuals’ and businesses’ access to financial services. Many financial institutions require a TIN for account opening and other financial transactions. Therefore, obtaining a TIN can be seen as a prerequisite for engaging in the formal financial sector.


The Taxpayer Identification Number (TIN) is a fundamental component of Nigeria’s tax administration system, and its significance has been further emphasized by the Nigeria Finance Act 2019. By requiring TINs for various transactions and incorporating them into the tax framework, the government aims to enhance transparency, accountability, and compliance within the tax system. Compliance with TIN requirements not only facilitates smoother transactions but also contributes to a more robust and equitable tax system that benefits both taxpayers and the nation as a whole.

For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, You can also reach us via WhatsApp at +2348038460036.