Targeted to make tax compliance easier for Nigeria’s largest companies, the Federal Inland Revenue Service has unveiled a new electronic invoicing system.
This is a major step in the government’s campaign to update tax administration and promote openness in business transactions.
Officially launched on August 1, the digital invoicing system is for businesses with an annual turnover of at least N5 billion. The platform is designed to foster accuracy, authenticity, and real-time invoice monitoring, hence facilitating a more effective tax collection process, according to the FIRS. The launch comes after a successful pilot phase started in November 2024 that gave insightful information on technical needs and integration processes.
MTN Nigeria became the first to send live electronic invoices, while other prominent companies, such as Huawei Nigeria and IHS Nigeria, finished testing runs and are getting ready for full implementation within the first two weeks of implementation, when almost 1,000 businesses—around 20% of the more than 5,000 eligible—had linked to the FIRS MerchantBuyer Model system.
The News Chronicles understands that the revenue agency has extended its compliance deadline to November 1, providing businesses with additional time for onboarding. This decision follows some taxpayers claiming operational difficulties matching their internal systems with the fresh platform. According to the FIRS, the grace period seeks to promote voluntary compliance and facilitate the fast implementation of the technology.
Created in collaboration with the National Information Technology Development Agency, the technology also uses private service providers to support companies in interacting with the platform. The system lowers the risk of tax evasion and improves supervision by giving immediate access to transaction data.
The project is scheduled to be introduced in stages, with medium-sized and rising firms anticipated to sign up for the platform shortly. This slow growth fits worldwide best practices and reinforces the government’s general revenue assurance plan.
Also, a significant element of the Nigeria Revenue Services Reform Act, the digital invoicing system aims to reconcile revenue reporting across agencies and produce a single, accurate database of government revenue. The FIRS has promised to continue stakeholder engagement through webinars, industry workshops, and town hall meetings to help with the transition, guaranteeing that all major taxpayers are ready for complete compliance.
