The growing controversy surrounding banks’ insistence that customers present Tax Identification Numbers (TINs) has taken a new turn, with economic and financial experts calling for the establishment of accessible tax ID collection centres across the country before full enforcement begins.
While regulators view the policy as a critical step toward expanding Nigeria’s tax base, analysts warn that rolling it out without visible, functional access points could deepen public frustration and undermine confidence in ongoing reforms.
Flashback: A Familiar Policy Cycle
The push to link bank accounts to tax identification is part of a broader, long-running reform agenda aimed at harmonising data across Bank Verification Numbers (BVN), National Identification Numbers (NIN) and TINs. The goal has always been to improve transparency, plug revenue leakages and bring more Nigerians into the formal tax system.
However, previous attempts to implement similar measures exposed a recurring weakness: policy directives often outpace the infrastructure needed to support them. Despite lessons from the past, banks once again find themselves enforcing compliance, even as many citizens remain uncertain about where and how to obtain a tax ID.
Banks at the Frontline of Public Anger
Across banking halls nationwide, customers—particularly those in the informal sector—complain of being asked for TINs without being given clear directions. For traders, artisans, freelancers and micro-entrepreneurs, the absence of visible tax ID centres at local levels has turned a regulatory requirement into a source of anxiety.
Banks insist they are acting under regulatory obligations and face penalties if they fail to comply. The result is a growing tension between financial institutions and customers, with bank staff caught in the middle of an incomplete policy rollout.
Experts Speak: Access Must Come Before Enforcement
Celestine Ukpong, an economist, said the controversy could have been avoided if access had been prioritised over enforcement.
“Before asking banks to demand tax IDs, government should have established clearly identified TIN collection centres in every state and local government,” Ukpong said. “Compliance improves when people can walk into a nearby centre, get guidance, and complete registration without stress.”
Ukpong noted that in countries with large informal economies, successful tax reforms rely heavily on decentralised access points and sustained public education.
Similarly, Peter Adebayo, FCA, stressed that the absence of visible tax ID centres fuels suspicion and resistance among citizens.
“People are more willing to comply when they see a system working for them,” Adebayo explained. “If there were functional tax ID collection centres across the country before implementation, banks would not be bearing the brunt of public anger today.”
According to Adebayo, banks should only serve as verification points, not primary enforcement agents, adding that technology and physical centres must work together to ease compliance.
Reflection: Avoiding Policy Shock
Experts warn that rolling out enforcement without preparatory structures creates what they describe as “policy shock,” where citizens feel ambushed by sudden requirements. This, they say, could push some Nigerians away from formal banking, threatening years of progress in financial inclusion.
They argue that clearly branded tax ID centres—supported by mobile registration units for rural areas—would not only simplify the process but also signal government readiness and seriousness.
The Way Forward
As debate continues, experts agree on one key recommendation: establish and publicise tax ID collection centres nationwide before tightening enforcement through banks. This should be accompanied by robust digital platforms, clear timelines, and aggressive public awareness campaigns.
Until access matches enforcement, the demand for tax IDs will remain contentious—another example of a reform with good intentions but flawed execution.
Experts warn that banks demanding Tax Identification Numbers without nationwide TIN collection centres could trigger public backlash, urging access and awareness before enforcement.
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