FIRS Rolls Out E-Invoicing to Boost Tax Compliance, Sets November Deadline

Zacch Adelabu Adedeji, The Executive Chairman of the Federal Inland Revenue Service (FIRS)

The Federal Inland Revenue Service (FIRS) has officially launched its electronic invoicing system, marking a major step in Nigeria’s shift to digital tax administration.

The platform—known as the Merchant-Buyer Model—went live on August 1, 2025, after a pilot phase that began in November 2024. It is designed to make tax compliance faster, more transparent, and easier to track.

Large companies with annual turnover of ₦5 billion and above are the first to be onboarded. So far, about 1,000 firms—20% of the over 5,000 eligible—have already begun integrating with the FIRS system.

MTN Nigeria became the first company to transmit live e-invoices, with Huawei Nigeria and IHS Nigeria set to follow soon. To speed up adoption, FIRS is working with the National Information Technology Development Agency (NITDA) to accredit service providers who will help businesses connect to the system.

Although the initial compliance deadline was August 1, FIRS has extended it to November 1, 2025, giving more time to companies that faced operational delays.

The e-invoicing system, part of FIRS’s Electronic Fiscal System (EFS), offers real-time visibility of transactions, reduces tax evasion, and supports the Nigeria Revenue Services Reform Act’s goal of harmonising revenue reporting.

FIRS says the rollout will be done in phases, starting with large taxpayers before expanding to medium and small businesses. The move aligns with global best practices and is expected to boost revenue assurance and modernise Nigeria’s tax system.