FIRS Rolls Out E-Invoicing to Curb Tax Evasion, Targets N5bn Turnover Firms

• The Federal Inland Revenue Service has launched the electronic invoicing system to modernise tax administration in Nigeria
• Known as the Merchant-Buyer Model (MBM), the platform went live on August 1 after a pilot phase that began in November 2024
• The EFS provides real-time visibility into commercial transactions, ensuring that invoices are authentic, accurate, and complete

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Federal Inland Revenue Service (FIRS) has launched a groundbreaking electronic fiscal system (EFS) designed to modernise tax administration and improve compliance among Nigeria’s largest taxpayers.

Known as the Merchant-Buyer Model (MBM), the platform went live on August 1 after a pilot phase that began in November 2024.

Large corporations first in the digital net

The EFS provides real-time visibility into commercial transactions, ensuring that invoices are authentic, accurate, and complete.

According to Dare Adekanmbi, media aide to FIRS chairman Zacch Adedeji, companies with annual turnovers of ₦5 billion or more were the first to be onboarded.

Read also

Afri Invoice opens 150 job opportunities to drive FIRS e-Invoicing push in Nigeria

Out of over 5,000 large taxpayers in Nigeria, about 1,000 firms, representing 20% of the category, have already commenced integration with the MBM platform.

The remaining companies must complete the process by November 1, 2025, the extended deadline announced by the tax authority.

Telecom giants lead the e-invoicing revolution

Telecom operator MTN Nigeria became the first company to transmit live electronic invoices to the FIRS, officially marking the start of the e-invoicing regime.

Technology firm Huawei Nigeria and infrastructure provider IHS Nigeria have also concluded successful test transmissions and are expected to go live in the coming days.

Strategic partnerships for seamless onboarding

In collaboration with the National Information Technology Development Agency (NITDA), the FIRS has incorporated service providers into the e-invoicing ecosystem.

These providers, acting as System Integrators and Access Point Providers, will facilitate onboarding, integration, and invoice transmission for taxpayers.

This support aims to ensure that companies can comply without technical bottlenecks.

Read also

FG to share N25,000 each to families, lists beneficiaries

Compliance push with extended deadline

While the original deadline for onboarding was August 1, the FIRS has approved a three-month extension to encourage voluntary compliance.

Adekanmbi acknowledged that many taxpayers made genuine efforts to meet the initial date but faced operational challenges.

The agency emphasised that the November 1 deadline remains final for all companies in the large taxpayer category.

Boosting revenue, reducing tax evasion

The FIRS said the e-invoicing initiative aligns with global best practices and supports the federal government’s broader goals of enhancing revenue assurance and reducing tax evasion.

The platform is also a “critical tool” in implementing the Nigeria Revenue Services Reform Act, which seeks to harmonise revenue collection across the country.

Ongoing stakeholder engagements

To ensure a smooth transition, the FIRS e-invoicing team will continue to engage stakeholders through webinars, workshops, and town hall meetings.

The agency expressed appreciation to large taxpayers, consultants, and service providers for their cooperation, urging all remaining firms to finalise onboarding before the new deadline.

Read also

Cost of cars, phones, and imports to Spike as Customs enforces 4% FOB levy

FIRS asks banks to close unauthorised tax collection accounts

Legit.ng earlier reported that the federal government is moving to end all unauthorised tax and levy collection in Nigeria, through its TaxPro Max platform.

As a result, the Federal Inland Revenue Service (FIRS) has issued a directive to the banks to promptly close any unauthorised bank account used for the collection of taxes and levies.

This means that collection accounts not authorized under the TaxPro Max platform will be identified across all banks and shut down immediately.

Source: Legit.ng