By Kayode Emola
The recent announcement by the Federal Government of Nigeria to link the Tax Identification Number (TIN) to an individual’s bank account, effective January 2026, is a misplaced priority. This shows that the Nigerian government is not considering a more effective way to generate revenue for the economy, thereby improving the lives of ordinary people on the street. Rather, it sets out schemes to marginalise people who are already disenfranchised.
There is nowhere in the world where your tax identity is linked to your bank account. Not even in the so-called developed countries do they ask you to produce your tax receipt or identity before you can operate a bank account. The government of Nigeria must adopt a global best practice when implementing policies to foster growth and development for the people, rather than making their lives more difficult.
In 2014, the government introduced the Bank Verification Number (BVN) to safeguard bank customers and to enhance the security of the banking system. This measure was put in place to ensure bank customers are who they say they are. I believe this should be the only requirement of the government for any citizen of the country to operate their bank account(s).
However, in 2020, the Federal government made it mandatory for every citizen to obtain a national identification number (NIN) to operate their bank account or acquire an international passport. This was in conjunction with the BVN introduced in 2014, when it felt as though the National Identity Management Commission (NIMC) established under Act No. 23 of 2007 was ineffective.
Asking people to obtain a Tax Identification Number for the purposes of operating their bank account is an aberration and an intimidation of the citizens whose rights continue to be trampled by the men in power. It is just an exercise in futility that will not generate more revenue for the coffers of the government.
Even if it does generate any revenue, it will be so marginal that there will be no real benefit to the ordinary person on the street. I have never seen anywhere in the world where Tax identity is linked to banking operations. Not least when we already have NIN and BVN that were set up specifically for such a purpose.
I am not saying registering for tax is wrong; however, if a country like Nigeria, whose diaspora population is propping up the Nigerian economy enormously with remittances back home, is made to choose between registering for tax in Nigeria or going without a bank account, I’m sure they would choose the latter. What such a policy will achieve is to further push them away. I don’t believe the diaspora community will be bothered about setting up tax affairs in Nigeria with this new policy.
Many Nigerians who live abroad are the backbone driving growth in the Nigerian economy. If the government were to implement this unnecessary policy, it would give them a reason to keep their money and not invest it in Nigeria.
Importantly, how can the government explain that a minor whose parents want to open an account for must first register for a TIN to operate a bank account? Is the minor going to be paying taxes even though they are not legally allowed to work? Is the policy not already failing the litmus test before it is put out to the public to implement?
What the government should have done is to make sure that the National Identification Number (NIN) already in place is linked to people’s taxes with the Inland Revenue. In that way, there is no duplication of information and effort. This would have saved a lot of time and effort if this TIN time-wasting exercise had been channelled into profitable ventures that will drive the economy forward.
Except if the government is hoping that this policy is another avenue to create something for the boys to keep them going. If not, there is no reason why it can’t think through the policy properly, rather than pushing through a policy that is bound to fail. I know for certain that many in the diaspora will never register for this tax rubbish, and do not care if their bank account is blocked or closed for whatever reason that the Nigerian government can find, except they have business in Nigeria already.
It is only those who live in Nigeria who, for the fear of intimidation, will go ahead to register for the TIN. I can bet that more than 70% of the people who will register for the TIN will not pay tax for the next 10 years, as they have no earning power to pay tax. How can the government tax what is not available? So, tying banking operations to TIN is not only foolish but counterproductive to the economy.
There must be adequate jobs for the people to do to earn a decent income to be able to pay tax. Merely forcing people to register for TIN does not translate into revenue generation for the government. It is just another irritating layer of bureaucracy to punish the poor people already wallowing in poverty.
Which is why the Yoruba people must understand that if the government succeeds in forcing our people to register to pay taxes through the TIN. The north will blatantly refuse to register, but we would have been foolish to pay more money into the government to continue to subsidise the north. A fruitless venture we have undertaken for over 100 years.
It is high time we cut ties with Nigeria to set up our Yoruba nation so that we can generate good jobs and decent wages for our people, so they can be proud to pay their fair share of taxes. Patching Nigeria and hoping that one president, governor, or politician will change the country is living in a fool’s paradise. We don’t have to dawdle in our decision to leave Nigeria. We must make haste whilst we can so that we can build a better future for our unborn children.