Nigeria: Federal Government Deploys E-Fiscal Platform to Strengthen Tax Compliance

The Federal Government has launched a national Electronic Fiscal System (EFS) to modernise tax administration, curb evasion, and improve transparency in revenue collection across Nigeria.

The Federal Inland Revenue Service (FIRS) said the platform, which features an electronic invoicing solution known as the Merchant-Buyer Model (MBM), went live on August 1, 2025, following a pilot phase that began in November 2024.

In its first phase, the system targets large companies with annual turnovers of ₦5 billion and above, offering real-time visibility into commercial transactions and ensuring the authenticity, accuracy, and completeness of invoices. According to FIRS, at least 1,000 firms—representing 20% of the more than 5,000 eligible businesses—have already adopted the platform.

The deadline for full onboarding has been extended from August 1 to November 1, 2025, to accommodate companies making genuine efforts to comply but facing operational challenges.

“MTN Nigeria became the first taxpayer to transmit live e-invoices to the FIRS, officially marking the start of the e-invoicing era. Huawei Nigeria and IHS Nigeria have completed test transmissions and will go live shortly,” the agency confirmed.

In partnership with the National Information Technology Development Agency, the FIRS has approved service providers to act as system integrators and access point providers, supporting onboarding, integration, and invoice transmission for taxpayers. Medium-sized and emerging businesses will be onboarded in subsequent phases.

The initiative aligns with global best practices and is part of broader reforms under the Nigeria Revenue Services Reform Act, aimed at improving revenue assurance, harmonising reporting, and closing tax loopholes.

President Bola Tinubu has prioritised expanding Nigeria’s tax net through sweeping reforms. A Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, is addressing issues such as multiple taxation, poor coordination, and systemic loopholes.

From January 2026, new legislation—including the Nigeria Tax Act and the Tax Administration Act—will take effect, introducing digital registration, stricter reporting rules, and mandatory disclosure of beneficial ownership to expose hidden incomes and curb tax avoidance schemes.