E-Financial
Anxiety over FG’s Threat to Block Accounts without TIN
There is palpable fear across the social and economic strata of Nigeria as the countdown to the January 2 date set by the Federal Government for all Nigerians to ensure their bank accounts have their Tax Identification Number (TIN) or risk being blocked.
Most Nigeria spoken by New Telegraph to on the preparedness for the commencement of the policy in less than two weeks time, described the policy as draconian, urging government to look for other ways to ensure people pay their taxes.
Many said that they are not even aware that their accounts will be blocked by January 2 if it does not have their TIN numbers.
Speaking, Mr. Chinazo Ibeneche, a spare parts trader at Ladipo Market Lagos, said: “I pay my tax, I have my TIN but what of my old mother and father in the village?
They are not doing anything, so I transfer money to their account regularly for their upkeep. What will happen to them from January 2nd? Does it mean that I will be travelling home regularly just to give them the small small money I normally send to them?
This is confusing! “ Dr Duroajai Fakurade, a lecturer in the Department of Medicine, University of Lagos, lashed out at the National Assembly for passing such ambiguous law, saying it will create hardship and cause anxiety in the land.
According to him, the move by the Federal Inland Revenue Service to commence the implementation of the new law from January without adequate education and explanation to the Nigerian public is insensitive.
“We are just moving from one harsh policy to the other? Do a vox pop of the teaching staff in this school alone, you will realize that no one has an in-depth understanding of what this law or policy is all about. Is it for taxpayers alone or for whosoever that has a bank account?
“Those supposed to pay tax are the working class, business and property owners. When it comes to tax collection in Nigeria, where does the government have problem? Definitely not with the workers, maybe the informal sector but mainly the big men of Nigeria who do not pay tax. When you look at all luxuries they indulge in, you will understand my point.
“The bank account policy will increase the hardship of Nigerians who in other climes are normally taken care of by their governments vis a vis the unemployed youths, dependants, housewives and aged people,” he said.
Also speaking, Dr. Samuel Nzekwe, a financial expert and former president of the Association of National Accountants of Nigeria (ANAN), said while the TIN requirement to operate an bank account in the country from January 2, 2020 is aimed at ensuring that all taxable Nigerians are brought into the tax net, he urged the government to note that all account holders are not taxable.
“So the challenge here is isolating the taxable from the un-taxable.
Doing that is not likely to be hitch free without causing a dislocation in the system. “How do you isolate the accounts of the unemployed, the aged and the old dependants who depend on the stipend paid to them through their accounts by their breadwinners or their benefactors? “Mind you, you cannot be able to determine whether a person is employed or not through the amount in the person’s account, because there are many unemployed people who live more comfortably than those working, courtesy of their benefactor or breadwinner.
You have some women who are full time housewives and you have people living in the village but are being provided for by their kit and kins in the cities and the Diaspora.”
He said without adequate sensitization, commencing the implementation of the policy create a lot of confusion in the land “because there is nothing you can do about our culture here. We provide for extended family members and our immediate family. Are those category of Nigerians expected to pay tax? Does the policy imply that anybody with a bank account number must pay tax?
These are issues
The Federal Inland Revenue Authority must address before implementing of the law that require people to have their TIN linked to their bank account number,” he stressed.
FIRS begins nation-wide clamp down on tax defaulters Meanwhile, in a renewed bid to bring tax defaulters to book in the country, the Federal Inland Revenue Service (FIRS) commenced nationwide tax enforcement on Wednesday, December 18, 2019.
The latest move by the FIRS was confirmed by Wahab Gbadamosi, head, Communications and Servicom Department.
According to Gbadamosi, the FIRS has issued a notice to commence nationwide tax enforcement with a view to prosecuting defaulters.
The details: In a notification sent to taxpayers on Tuesday, signed by the Acting Executive Chairman of FIRS, the FIRS disclosed that plans have been concluded to begin tax enforcement against tax defaulters as they continue to fail in fulfilling their tax obligations.
New Telegraph reported that FIRS had advised defaulting taxpayers to “settle their tax liabilities within Seven days of the publication to avoid any inconveniences or interruptions in their operations. Nigerians pay more for bank deposits in 2020 As the Central Bank of Nigeria moves to commence implementation of the cashless policy across the country from March 31, 2020, the Apex Bank said Nigerians will now be charged more for cash deposits and withdrawals in furtherance of its cashless policy.
FundQuest Financial Services Limited marked this year’s International Women’s Month with a renewed commitment to economic empowerment, hosting the inaugural FundHER by FundQuest Conference.
This initiative brought together over 100 women-led Small and Medium Enterprises (SMEs), providing them with actionable business insights, high-value networking, and, most importantly, access to funding.
Delivering the first keynote address, Dr. Jennifer Seidu, Principal Consultant, JV Management Consulting Limited, underscored the critical hurdles female entrepreneurs face: constrained access to funding, market expansion limitations, regulatory roadblocks, and operational inefficiencies.
She lauded FundQuest’s decisive intervention through FundHER, recognising the initiative as a timely and much-needed response to the financial inequities that women-led businesses encounter.
Joan Ediagbonya, Group Head, Brand Communication and Customer Experience at FundQuest, also reinforced these concerns with data, pointing out that while women own 45 per cent of SMEs in Nigeria, only 10 per cent have access to formal funding. Quoting Michelle Obama, she emphasised, “No country can ever truly flourish if it stifles the potential of its women and deprives itself of the contributions of half of its citizens.”
Similarly, Ms. Olubukola Olaigbe, CEO of Veedic Nigeria Limited, shared how accessing financing from FundQuest facilitated her logistics firm’s expansion, proving that with the right financial support, women entrepreneurs can achieve remarkable business growth.
Speaking on the future of FundHER, Mr. Abiodun Akinjayeju, Managing Director and CEO of FundQuest, made it clear that this initiative is here to stay. In his words; “If you educate a woman, you educate a nation; if you fund a woman’s business, you are funding the economy.”
The World Bank has approved a $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus Programme.
According to information obtained from the bank’s website on Sunday, the approval, which took place on March 28, 2025, marks a significant step in addressing Nigeria’s economic challenges through expanded access to livelihood support, food security services, and grants for poor and vulnerable households and firms.
The project, officially titled the NIGERIA: Community Action (for) Resilience and Economic Stimulus Program, aims to provide essential support to households affected by economic downturns and to bolster community resilience.
It also seeks to improve food security and create economic opportunities for populations most affected by recent economic disruptions.
According to the World Bank, the program represents a significant step toward addressing systemic vulnerabilities in Nigeria’s economy.
By channeling resources directly to underserved communities, the project should alleviate the burden of rising living costs while fostering sustainable growth.
The $500 million loan is not the only financial commitment Nigeria anticipates this week as two additional funding packages are in the pipeline, awaiting final approval.
One of the loans is valued at $80 million and will focus on accelerating nutrition outcomes across the country.
The second, worth approximately $552 million, is designed to enhance access to quality basic education nationwide as both projects are scheduled for final clearance on March 31, 2025.
These loans are part of the World Bank’s broader strategy to support Nigeria’s development priorities, most especially in areas such as healthcare, education, and poverty alleviation, while the institution emphasized the importance of implementing these programs efficiently to ensure maximum impact.
While the loans aim to address urgent socio-economic needs, Nigeria’s rising debt profile has raised concerns among stakeholders. Under the President Bola Tinubu’s leadership, the country has received approvals for 11 World Bank projects totaling 7.45 billion in less than two years. However, data from the Debt Management Office (DMO) reveal that only 774.99 million (about 16% of the approved amount) had been disbursed as of July 31, 2024.
This slow pace of disbursement has sparked debates about the efficiency of project execution and fund utilization
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by Hawwau Gambo, acting head of Communication & Public Affairs, NDIC, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states:
“Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
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