The Federal Inland Revenue Service (FIRS) has introduced a new e-invoicing system in Nigeria, requiring payment gateways to report all transactions for compliance monitoring. This move replaces traditional paper-based and basic electronic invoicing with structured digital invoices, aimed at boosting tax compliance, streamlining business processes, and enhancing transparency in Nigeria’s tax administration.
What is the E-Invoicing System?
The e-invoicing platform is designed to digitise all business transactions across:
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Business-to-Government (B2G)
By implementing this system, the FIRS intends to reduce tax leakages, improve efficiency, and ensure real-time transaction reporting.
Onboarding and Compliance Deadline
Initially, companies were required to onboard by August 1, 2025, but the FIRS has extended the deadline by three months to November 1, 2025, giving businesses more time to comply.
So far, over 1,000 companies have already registered on the platform, with the FIRS expecting more firms to follow before the final deadline.
Who Must Comply?
According to FIRS, onboarding on the e-invoicing system is mandatory for companies with an annual turnover of N5 billion and above. Currently, there are around 5,000 eligible companies expected to integrate with the platform.
Failure to comply may expose defaulting companies to penalties, audits, and disruptions in their ability to process official tax-related documentation.
Why the E-Invoicing Initiative Matters
The new e-invoicing directive is expected to:
- Increase tax revenue by curbing under-reporting and fraud.
- Improve efficiency for businesses through automated invoicing and reporting.
- Enhance transparency across Nigeria’s tax ecosystem.
- Align Nigeria’s tax system with international best practices.
Conclusion
The e–invoicing compliance system represents a major step toward modernising Nigeria’s tax administration. With thousands of large companies mandated to onboard, the policy signals the government’s commitment to driving digital transformation, transparency, and accountability in the financial ecosystem.
