The federal government of Nigeria has introduced a new bill that mandates individuals in banking, insurance, stockbroking, and other financial services to provide a Tax Identification Number (TIN) before opening or operating a bank account. The bill, presented to the National Assembly on October 4, 2024, aims to enhance tax compliance and improve revenue collection across Nigeria
Key Provisions of the bill include:
TIN Requirement: Financial professionals must provide a TIN before operating accounts, ensuring they are properly registered for tax purposes.
Exemptions: Non-resident individuals who earn only passive income from investments in Nigeria must submit relevant information to tax authorities.
Automatic Registration: Tax authorities can automatically register individuals who fail to apply for a TIN and notify them of their registration.
Penalties for Non-Compliance: A fine of N50,000 for the first month and N25,000 for each subsequent month of failure to register.
This legislative move is part of broader tax reforms initiated by the President Bola Tinubu-led administration, which established a tax and fiscal reform committee in August 2023. The reforms aim to overhaul Nigeria's tax system to improve efficiency, promote economic growth, and ensure more equitable tax distribution.
