By John Umeh
The Federal Government has officially launched a nationwide Electronic Fiscal System (EFS) aimed at modernizing Nigeria’s tax administration, tackling tax evasion, and promoting greater transparency in revenue collection.
The Federal Inland Revenue Service (FIRS) announced that the EFS, which features an electronic invoicing mechanism known as the Merchant-Buyer Model, was activated on August 1, 2025, following a successful pilot phase that started in November 2024.
This initial rollout focuses on large corporations with annual turnovers of N5 billion and above. The new platform is designed to simplify tax compliance, making it faster, more efficient, and transparent for taxpayers. It also enables the FIRS to monitor commercial transactions in real time, ensuring invoices are genuine, accurate, and complete.
According to Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, within just two weeks of the launch, around 1,000 companies—equivalent to 20 percent of over 5,000 eligible firms—have already integrated their systems with the FIRS’ Merchant-Buyer System platform.
The rest of the large taxpayers are expected to complete their onboarding and system integration by the revised deadline of November 1, 2025. This deadline was extended by three months from the original August 1 date to accommodate companies that encountered operational challenges despite making sincere efforts to comply on time.
MTN Nigeria led the pack as the first company to transmit live electronic invoices to the FIRS, marking the formal start of the e-invoicing regime. Huawei Nigeria and IHS Nigeria have also completed their test transmissions and are expected to go live shortly.
The FIRS, working alongside the National Information Technology Development Agency, has incorporated various service providers into the ecosystem to serve as system integrators and access points. These partners assist taxpayers with onboarding, system integration, and invoice transmission.
The agency praised the cooperation of large taxpayers, tax consultants, and service providers for their dedication to the initiative, while urging the remaining eligible firms to utilize the extended deadline to comply fully.
The rollout of the e-invoicing system will continue in phases, with medium-sized and emerging businesses set to be onboarded after large companies. This approach aligns with global best practices and supports the Federal Government’s broader strategy to enhance revenue assurance, curb tax evasion, and unify revenue reporting under the Nigeria Revenue Services Reform Act.
To ensure a seamless transition, the FIRS’ e-Invoicing Implementation Team will continue engaging stakeholders through webinars, workshops, and town hall meetings leading up to the November deadline.
President Bola Tinubu has made significant strides in tightening Nigeria’s tax system through a comprehensive reform agenda targeting evasion and fragmented revenue collection. He established a Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, to address issues such as multiple taxation, poor coordination, and systemic loopholes.
Beginning January 2026, four new laws, including the Nigeria Tax Act and Tax Administration Act, will come into force. These laws will mandate digital tax registration, enforce stricter reporting standards, and require disclosure of beneficial ownership to expose hidden incomes concealed behind shell companies. They also aim to increase transparency in transactions primarily structured to obtain tax advantages.
