The Federal Government has officially launched a national Electronic Fiscal System (EFS), aimed at transforming Nigeria’s tax landscape by automating invoice processing, improving compliance, and curbing tax evasion.
According to the Federal Inland Revenue Service (FIRS), the system went live on August 1, 2025, following a successful pilot phase that began in November 2024. The rollout marks a significant milestone in the country’s ongoing drive to modernise revenue administration and align with international best practices.
The EFS introduces a digital invoicing mechanism known as the Merchant-Buyer System (MBS) model, which provides real-time visibility into taxable commercial transactions. The system verifies the authenticity, accuracy, and completeness of invoices and is designed to make tax compliance simpler, faster, and more transparent.
In a statement issued on Sunday, Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, revealed that over 1,000 large companies accounting for 20% of the more than 5,000 eligible businesses have already begun integrating their systems with the MBS platform within the first two weeks of the official rollout.
“MTN Nigeria became the first taxpayer to transmit live e-invoices to FIRS, marking the official launch of the electronic invoicing era,” the statement said.
“Huawei Nigeria and IHS Nigeria have completed test transmissions and are expected to go live shortly.”
The first phase targets large taxpayers with an annual turnover of ₦5 billion and above. While the initial compliance deadline was set for August 1, the FIRS has now extended it to November 1, 2025, to accommodate companies that made genuine efforts to meet the original timeline but encountered operational hurdles.
The revenue agency is working closely with the National Information Technology Development Agency (NITDA) to onboard approved service providers, who will serve as system integrators and access point providers to assist businesses with integration, onboarding, and transmission of invoices.
The FIRS applauded the cooperation of large taxpayers, tax consultants, and tech partners who have supported the implementation process so far and urged the remaining eligible companies to leverage the extended deadline to comply.
Looking ahead, the electronic invoicing regime will be expanded in phases to include medium-sized enterprises and emerging businesses, as part of the broader digital transformation of tax administration under the Nigeria Revenue Services Reform Act.
To ease the transition, the FIRS said its e-Invoicing Implementation Team will continue to engage stakeholders through webinars, workshops, and town hall sessions in the lead-up to the November deadline.
This move aligns with President Bola Tinubu’s fiscal reform agenda, which prioritizes broadening the tax base, closing revenue loopholes, and simplifying Nigeria’s fragmented tax system.
The President’s Fiscal Policy and Tax Reforms Committee, led by tax expert Taiwo Oyedele, has been instrumental in designing policies to harmonise tax administration, combat evasion, and reduce the burden of multiple taxation.
Starting January 2026, four new laws including the Nigeria Tax Act and the Tax Administration Act will take effect, ushering in:
- Digital taxpayer registration
- Stricter reporting requirements
- Mandatory disclosure of beneficial ownership
- Transparent scrutiny of tax-motivated transactions
These reforms are expected to expose hidden income, reduce tax avoidance through shell structures, and significantly increase government revenue in the years ahead.
