Abuja: The Federal Inland Revenue Service (FIRS) has introduced a new electronic invoicing solution to revolutionize tax payment methods for businesses in Nigeria. This initiative aims to expedite, simplify, and enhance transparency in tax compliance processes.
According to News Agency of Nigeria, the Executive-Chairman of FIRS, Dr. Zacch Adedeji, revealed in a statement by Dare Adekanmbi, his Special Adviser on Media, that the e-invoicing solution became operational on August 1, succeeding a pilot phase initiated in November 2024. Large taxpayers-companies with an annual turnover of five billion Naira and above-are prioritized for onboarding onto the platform.
Adedeji noted that within two weeks of the initiative’s launch, approximately 1,000 companies, equating to 20% of the over 5,000 eligible firms, have adopted the solution and begun integration with the FIRS MBS platform. The remaining large taxpayers are required to finalize their onboarding by November 1. MTN Nigeria was the first to transmit live electronic invoices, marking the commencement of the e-invoicing era. Huawei Nigeria and IHS Nigeria have completed test transmissions and are preparing to go live.
Collaboration with the National Information Technology Development Agency (NITDA) has led to the incorporation of service providers into the ecosystem, acting as both System Integrators and Access Point Providers to aid in the onboarding and invoice transmission processes.
Adedeji extended appreciation to large taxpayers, tax consultants, and service providers for their cooperation and commitment to the e-invoicing project. He acknowledged the efforts of taxpayers who attempted to meet the August 1 deadline but faced operational challenges. In response, FIRS management has approved a three-month extension, setting the new deadline for November 1. The FIRS e-Invoicing implementation team will continue to offer support through stakeholder engagements to ensure a smooth transition for all large taxpayers.
The e-invoicing solution, part of an electronic fiscal system (EFS) developed by FIRS, is designed to offer real-time visibility into commercial transactions and ensure the authenticity, accuracy, and completeness of invoices. The phased rollout begins with large taxpayers, with medium and emerging groups to follow. The system aligns with global best practices and supports the Federal Government’s objectives of enhancing revenue assurance, reducing tax evasion, and modernizing tax administration. It is also pivotal in implementing the Nigeria Revenue Services Reform Act, which aims to harmonize revenue reporting and establish a unified source of truth for government revenues.