The Nigeria Revenue Service (NRS), in partnership with the Joint Revenue Board (JRB), has introduced a new mandatory Taxpayer Identification (Tax ID) system for all taxable persons in Nigeria as part of efforts to modernise tax administration and improve compliance nationwide.

The new directive, announced in a public notice on Monday, is backed by Sections 6, 7 and 8 of the Nigeria Tax Administration Act, 2025, which requires every taxable individual and business entity to obtain a Tax ID.

According to the NRS, the Tax ID will serve as a single unified identity for taxpayers, enabling seamless interaction with federal and state tax authorities while helping to consolidate taxpayer records and eliminate duplication.

The agency said the initiative is designed to simplify tax processes such as registration, filing and payment, while also improving transparency, accountability and tracking of taxpayer information across government institutions.

Under the new framework, the Tax ID system will replace the existing Tax Identification Number (TIN) Validation API currently used by Ministries, Departments and Agencies (MDAs), financial institutions and other organisations.

The NRS directed organisations seeking integration or validation services for individuals, enterprises and business names to contact the Standardisation and Modernisation Department of the JRB for access to the new API and implementation guidelines.

It added that organisations validating corporate entities should work with the Tax Automation Department of the NRS.

The agency said the reform forms part of broader government efforts to digitise Nigeria’s tax system, strengthen revenue collection and create a more efficient and integrated tax administration structure across all levels of government.