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The Federal Inland Revenue Service (FIRS) has reaffirmed its commitment to digitizing Nigeria’s tax processes, emphasizing that its e-invoicing initiative aligns with global best practices.
During a Stakeholder Engagement for the Pilot Rollout of the E-Invoice Solution held in Lagos, the Chief of Staff to the Executive Chairman of FIRS, Dr. Zacch Adedeji Tayo Koleosho, highlighted the agency’s strides in tax digitization. He disclosed that Nigeria’s national database now records over 500,000 active corporate taxpayers, a significant step in enhancing tax compliance and efficiency.
Streamlining Tax Administration with Technology
Koleosho emphasized that the e-invoicing system is a homegrown solution tailored to Nigeria’s unique tax environment. By leveraging technology, the system aims to streamline tax filing, prevent tax evasion, and enhance transparency.
He noted that while many countries are still in the early stages of tax digitization, Nigeria has fully automated its tax processes, putting the country ahead in several key areas. The ongoing transition to Tax Action 2.0, which integrates digital tax filing systems like TaxPro, has already simplified tax compliance.
Looking ahead, the ultimate goal is Tax Action 3.0, a fully integrated system where tax compliance becomes a seamless part of business operations. Under this framework, systems such as Enterprise Resource Planning (ERP), Point-of-Sale (POS), and financial records will be directly connected to tax administration tools, reducing manual effort and enhancing accuracy in tax reporting.
“The future of tax administration is automation, and that future is closer than we think. This pilot rollout is a crucial step in refining our system with stakeholder input to ensure it meets the needs of all taxpayers,” Koleosho stated.
A Locally Developed Solution for Nigerian Businesses
Koleosho emphasized that the e-invoicing system is designed and developed by Nigerians for Nigerians, ensuring it aligns with local business processes. The initiative actively involves large taxpayers, tax consultants, policymakers, and other stakeholders to create a system that is both effective and user-friendly.
Echoing these sentiments, Dr. Olabode Olatunji, representing Coordinating Director for Large Taxpayer Groups, Mrs. Amina Ado, described the e-invoicing system as more than just a technological innovation—it is a strategic enabler for Nigeria’s tax ecosystem.
“The e-invoicing system enhances tax compliance, minimizes revenue losses, and improves the ease of doing business in Nigeria. The insights from this pilot phase will guide its broader implementation, ensuring it meets the diverse needs of taxpayers across various industries,” Olatunji explained.
As Nigeria progresses in its tax digitization journey, FIRS remains committed to engaging stakeholders, refining the system, and ensuring a seamless transition for businesses. Through continuous innovation, Nigeria is positioning itself as a global leader in tax administration and regulatory compliance.
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