FIRS deepens e-invoicing compliance as 1,000 taxpayers onboard in 2 weeks

The Federal Inland Revenue Service (FIRS) has intensified its drive to modernise Nigeria’s tax administration with the nationwide rollout of its e-invoicing and Merchant Buyer Solution, a project aimed at boosting compliance, plugging revenue leakages and aligning the country’s tax system with global standards.

At a post-go-live stakeholder workshop in Lagos, senior officials of the Service, technology partners and leading corporate taxpayers came together to review progress since the system went live on August 1, 2025. The meeting provided an opportunity for hands-on demonstrations, technical guidance and frank feedback on the onboarding process.

Director of Change Management at FIRS, Emmanuel Eze, who represented Tayo Koleosho, Chief of Staff to the Executive Chairman, Dr Zacch Adedeji, said the e-invoicing project was a product of collaboration between accredited service providers, the National Information Technology Development Agency (NITDA) and other relevant agencies. According to him, 1,000 taxpayers have already been onboarded in the first two weeks, representing 20 per cent of the target. While the Service is poised to meet the November deadline, Eze stressed that it hopes to achieve full compliance without resorting to enforcement.

He explained that the workshop was not just about explaining the system’s features, but also about introducing certified service providers, offering live technical demonstrations and listening to the concerns of users.

“Our approach is collaborative, not punitive. “We are building a transparent, trustworthy system that helps you compete globally while fulfilling your obligations locally”, he said.

Project Manager for the initiative, Mohammed Bawa, said the onboarding journey had been smooth enough to warrant the extension of the compliance deadline to November. He noted that early adoption figures were encouraging and that the Service was working round the clock to resolve any electronic or integration challenges.

For Acting Director at FIRS, Mike Adoga, the motivation behind the initiative is clear: to ensure taxes are not evaded, audits are more straightforward, and Nigeria’s low tax-to-GDP ratio is improved. “At just 10 per cent, our tax-to-GDP ratio is far below what is acceptable for a country of our size. This is not good enough, and we are deploying technology like e-invoicing, invoice factoring and related solutions to close that gap,” he said.

Adoga emphasised that the system has been built to ensure scalability, compatibility and inclusivity. From small businesses to large corporations, all taxpayers will be able to integrate their existing Enterprise Resource Planning (ERP) systems with the e-invoicing platform and the Merchant Buyer Application for seamless operations.

This, he said, would guarantee real-time invoice transmission and ensure that every transaction meets compliance requirements.

Stakeholders at the workshop, including representatives from MTN and Huawei, welcomed the initiative, noting its potential to reduce disputes, improve transparency and make compliance less cumbersome.

Some, however, called for special attention to be paid to smaller enterprises that may struggle with the technological requirements.

FIRS officials responded by promising targeted outreach, training and capacity-building programmes to ensure that no taxpayer is left behind before the November deadline. The Service also reaffirmed its commitment to keeping the system free of punitive undertones, focusing instead on trust, efficiency and collaboration.

The Merchant Buyer Solution, a key part of the e-invoicing system, supports both local and cross-border transactions. By validating, storing and transmitting invoices according to approved standards, it eliminates room for manipulation, reduces audit disputes and provides the government with real-time transaction data. Officials say the result will be more accurate revenue forecasting and better policy planning.

Closing the session, Eze reiterated the importance of partnership in achieving the project’s goals. “We are not just deploying technology; we are embedding transparency, trust and efficiency into the DNA of Nigeria’s tax administration. With your cooperation, we can build a tax system that works for everyone and stands as a model for Africa.”

With onboarding continuing at pace and the November deadline approaching, the FIRS noted that the e-invoicing and Merchant Buyer Solution could become a defining milestone in Nigeria’s journey towards a modern, transparent and efficient tax regime.