AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Under the Nigeria Tax Administration Act 2025, every taxable person must register and obtain a Tax ID, and it must appear on returns and transaction documents. From 1 January 2026 an individual's Tax ID is linked to their NIN and can be retrieved free online, so an employer should collect each employee's Tax ID at onboarding and use it in PAYE records and the annual return of emoluments.
If you employ people in Nigeria, the 2025 tax laws changed one piece of payroll admin that is easy to overlook from abroad. The old Taxpayer Identification Number (TIN) has given way to a national Tax ID, and the law now ties that identifier to every return and transaction document. Employees on PAYE are taxable persons, so each one needs a Tax ID, and your payroll records should carry it.
What the law requires
The Nigeria Tax Administration Act 2025 (NTAA), in force from 1 January 2026, sets out the rules:
- Section 4: every taxable person must register and obtain a "Taxpayer Identification ('Tax ID')".
- Section 7: a person may hold only one Tax ID; it is not transferable; and the tax authority may register a person who failed to apply.
- Section 8(1): the Tax ID must be stated on returns and correspondence with the tax authority and on documents for a transaction, and it is a condition for contracts with federal, state and local government bodies.
- Section 9: changes in particulars must be notified within 30 days.
- Section 14: the employer files a return of all emoluments paid to employees by 31 January each year for the previous year, showing for each employee the gross emoluments, deductions, net pay and tax deducted. Employees still file their own returns.
The Act does not say in so many words "the employer must collect each employee's Tax ID". But the employer's return is made employee by employee, and the Tax ID is the identifier the Act requires on returns. Without it, the tax you deduct may not be matched to the right person, which causes problems for the employee when they need a tax clearance certificate or want to show tax paid.
How an individual gets a Tax ID
The FCT Internal Revenue Service notice on the new Tax ID (dated 29 December 2025) says the Tax ID took effect on 1 January 2026, replaces previously issued TINs, and is free. Individuals retrieve it from their National Identification Number:
- Go to taxid.jrb.gov.ng or taxid.nrs.gov.ng.
- Choose the Individual tab and the NIN option.
- Enter the 11-digit NIN, then first name, last name and date of birth exactly as held by NIMC.
- The 13-digit Tax ID is displayed. Save or screenshot it.
Companies use the Corporate tab with their CAC registration number. The notice also says the new system "will not lead to bank account deductions or closures" for non-compliance. APM Terminals' customer advisory of 13 July 2026 describes the Tax ID generated on the Nigeria Revenue Service's Rev360 platform as the primary taxpayer identifier replacing the TIN. If a staff member's name or date of birth does not match NIMC's record, the lookup fails; the fix is a NIMC data correction, not a tax office visit.
Old TINs
Some commentary said existing TINs stay valid; the FCT-IRS notice says the Tax ID replaces them. The safe course is to record the new 13-digit Tax ID for everyone, and keep any old state TIN in the employee file as a reference.
Collecting Tax IDs from your team
| Step | Who | Record kept |
|---|---|---|
| Ask for NIN and Tax ID at offer stage | HR or manager in Nigeria | Onboarding form |
| Staff retrieve their own Tax ID online | Employee | Screenshot or printout |
| Check name and date of birth match the payroll record | Payroll lead | Note of any mismatch |
| Enter Tax ID in the payroll system | Payroll lead | Payroll master file |
| Review the list before the 31 January return | Owner or accountant | Signed checklist |
Ask staff to retrieve their own Tax ID rather than having a manager enter their NIN and date of birth on a portal. The NIN is personal data under the Nigeria Data Protection Act 2023, so keep the forms in one restricted place, tell staff why you collect them, and limit who can see them.
Which tax office
Employees' income tax is paid to the state where they are resident, not where your head office is. Section 3 of the NTAA gives state and FCT revenue services the tax on resident individuals. If your staff live in different states, the Tax ID stays the same but PAYE goes to each state. See which state receives PAYE for your staff.
If a new hire has no NIN
Without a NIN there is no individual Tax ID under the new system, and the NTAA lets the tax authority register a person who has not applied. Ask the new hire to enrol for a NIN promptly and record the date they did so. Do not delay their pay or PAYE because the Tax ID is missing; deduct and remit as normal and add the Tax ID when it arrives.
Where Pryme fits
Your company needs its own Tax ID too; the steps are in how to get a Tax ID for your business. A Pryme Business Account can be opened from any country, and the Compliance agent can keep the list of staff Tax IDs and flag missing ones before each payroll run. It prepares the work; a person approves.
Questions people ask
Do employees need a Tax ID in Nigeria?
Yes. The Nigeria Tax Administration Act 2025 requires every taxable person to obtain a Tax ID, and employees paying PAYE are taxable persons.
How can my staff get their Tax ID?
On taxid.jrb.gov.ng or taxid.nrs.gov.ng, using the Individual tab, their NIN and their names and date of birth as held by NIMC. It is free.
Is my old TIN still valid in 2026?
The FCT-IRS notice says the new Tax ID replaces previously issued TINs. Record the new 13-digit Tax ID for each person.
What if the Tax ID lookup says details do not match?
The names or date of birth differ from the NIMC record. The employee needs to correct the NIMC record or enter details exactly as NIMC holds them.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- FCT Internal Revenue Service: notice on the new Tax ID · accessed Oct 2026
- APM Terminals Onne: customer advisory on the National Tax ID (13 Jul 2026) · accessed Oct 2026
- Nigeria Data Protection Act 2023 (KPMG copy) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.