In line with Section 8 of the Nigeria Tax Administration Act (NTAA) 2025, the Lagos State Internal Revenue Service (LIRS) has made the use of a Tax Identification Number (Tax ID) mandatory for all tax, financial, and government-related transactions.
The Core Requirement
A valid Tax ID must now be included on every official document, including tax returns, government contracts, and financial records.
Where you must use it:
- Official Documents: Any return, notice, or letter sent to the LIRS.
- Banking & Finance: All persons engaged in banking, insurance, stockbroking, and other financial services must ensure that every taxable person provides a Tax ID before initiating or maintaining any transaction or account.
- Government Contracts: No government agency (MDA) can approve a contract or procurement without a valid Tax ID.
Penalties for not using a Tax ID.
Failure to comply with these statutory requirements may result in delays, rejection of documents, or other consequences permitted under the law, such as an administrative penalty of N1,000,000 or fine and imprisonment for contravention as provided by the law.
Key Takeaways: Under the Nigeria Tax Administration Act (NTAA) 2025, the use of a Tax ID (NIN for individuals or CAC number for businesses) is now a mandatory prerequisite for all banking, government contracts, and official transactions in Nigeria.
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