What's happening?
The government passed two new tax laws in 2025 that change how business tax IDs work. The Federal Inland Revenue Service (FIRS) is now the Nigeria Revenue Service (NRS), and they're connecting directly with the Corporate Affairs Commission (CAC).
The big change: Your RC Number is your Tax ID. One number for everything.
How it works from January 1, 2026
Before 2026
Register your business with CAC → get RC Number
Apply separately to FIRS for Tax ID
Keep track of both numbers
Use different numbers for different things
From 2026
Register your business with CAC → get RC Number
That's it. Your RC Number is automatically your Tax ID
No separate application. No extra card. No juggling multiple IDs.
What this means for your Kuda Business account
Opening a new account
When you open a business account with us, we'll ask for your RC Number. That same number covers both your business registration and tax compliance.
What we need:
Your CAC RC Number (this is now also your Tax ID)
Other standard KYC documents
What you don't need anymore:
A separate Tax ID card or certificate
If you already have a Kuda Business account
Nothing changes immediately. Your account keeps working normally.
We'll reach out in early 2026 with any updates to your profile. The transition is automatic on the government's side, so there's minimal action needed from you.
Why this change is happening
The government is connecting CAC and NRS databases. When you register your business, you're automatically visible to the tax system.
What this fixes:
No more duplicate registrations
Harder for businesses to avoid tax obligations
Simpler process for compliant businesses
Faster banking and KYC processes
Think of it like this: before, registering your business and getting tax-ready were two separate trips. Now it's one stop.
Your responsibilities
1. Keep your details current
If your business information changes, you have 30 days to notify the tax authority:
Registered address
Ownership or directors
Share capital
Contact information
Since CAC and NRS share data, changes in one system affect the other.
2. Use your RC Number consistently
From 2026, use your RC Number on:
All tax returns and filings
Correspondence with tax authorities
Government contracts
Banking documents (we'll update our systems to reflect this)
3. No separate tax card needed
You won't receive a physical tax ID card. Your RC Number certificate from CAC is enough.
Common questions
Q: Do I need to re-register for anything?
No. If you already have an RC Number, it automatically becomes your Tax ID on January 1, 2026.
Q: What happens to my old TIN?
It phases out. Your RC Number takes over as your single identifier.
Q: Will my Kuda Business account be affected?
Your account continues working normally. We'll handle any backend updates and let you know if we need anything from you.
Q: What if I registered my business before 2026?
The change applies to all registered businesses, old and new. Your existing RC Number becomes your Tax ID automatically.
Q: Can I still open a business account if I don't have my RC Number yet?
You'll need to complete CAC registration first. Once you have your RC Number, you can open your account with us—and you're automatically tax-registered too.
What Kuda is doing
We're updating our systems to align with the new framework:
Our KYC process will recognize RC Numbers as Tax IDs
We'll update account documentation requirements
We'll communicate any needed profile updates to existing customers
You don't need to do anything right now. We'll reach out if we need updated information from you.
This article explains changes under the Nigeria Revenue Service (Establishment) Act, 2025 and the Nigeria Tax Administration Act, 2025. We've simplified the legal language to make it easier to understand, but you should consult a tax professional for specific advice about your business.