As Nigeria moves to make Tax Identification Numbers (TINs) mandatory for all bank accounts from January 1, 2026, millions of ordinary citizens may face unexpected barriers to financial access. With over 38 million adults still financially excluded, and a general lack of trust in government institutions, this policy—spearheaded by Taiwo Oyedele and rooted in the Nigerian Tax Administration Act—aims to boost tax compliance and formalize economic activity. Yet critics warn that making TINs compulsory risks punishing everyday Nigerians rather than addressing the real challenges in tax reform.
For many, a bank account is not a sign of taxable income but a necessity for survival. Rural traders, motorbike riders, pensioners, and gig workers rely on banking services to save, receive transfers, or access loans. Forcing them to obtain a TIN introduces bureaucratic hurdles that could push millions back into cash-dominated transactions, undermining years of financial inclusion efforts and disrupting ordinary life.
Even well-meaning citizens may struggle with TIN registration. Past experiences, like the NIN-SIM linkage process, showed that large-scale enrolment often leads to long queues, delays, data mismatches, and systemic errors. Banks cannot accurately determine who is taxable, and enforcing the TIN requirement may create confusion, over-compliance, and unnecessary harassment of citizens. This makes the policy not only impractical but potentially destabilizing.
History shows that when Nigerians fear losing access to their funds, they respond with panic withdrawals and cash hoarding—as seen during the Naira redesign in 2023 or previous financial tightening measures. In a system already strained by inflation, high interest rates, and declining trust, mandatory TINs risk triggering a wave of instability. Without addressing the underlying lack of trust in government spending and tax transparency, coercive policies may backfire.
Experts suggest alternatives that strengthen tax compliance without endangering financial access. Automatic TIN issuance linked to BVN and NIN, voluntary compliance programs with incentives, targeted enforcement against high-value tax evaders, and digital platforms for easy registration are viable strategies. Tax reform should empower citizens, not punish them. Building trust, transparency, and convenience is the key to a modern, inclusive, and effective tax system in Nigeria.
source: nairametrics