The Federal Government has launched a nationwide Electronic Fiscal System (EFS) aimed at modernising tax administration, improving transparency, and curbing evasion in Nigeria’s revenue collection.
According to the Federal Inland Revenue Service (FIRS), the EFS — which features an electronic invoicing solution known as the Merchant-Buyer Model — officially went live on August 1, 2025, following a pilot phase that began in November 2024.
The initial rollout targets large corporations with annual turnovers of at least N5 billion. The platform is designed to streamline tax compliance by giving the FIRS real-time access to commercial transactions while ensuring invoices are authentic, accurate, and complete.
FIRS Chairman’s Special Adviser on Media, Dare Adekanmbi, revealed on Sunday that within two weeks of the launch, around 1,000 companies — 20% of over 5,000 eligible firms — had already integrated with the system. The onboarding deadline, originally set for August 1, has now been extended to November 1, 2025, to allow more companies facing operational challenges to comply.
“MTN Nigeria was the first to transmit live e-invoices, officially signalling the start of the new regime. Huawei Nigeria and IHS Nigeria have also completed test runs and will go live soon,” the agency confirmed.
In partnership with the National Information Technology Development Agency (NITDA), FIRS has enlisted service providers to serve as system integrators and access points, supporting companies through onboarding, integration, and invoice submission. The agency praised taxpayers, consultants, and service partners for their collaboration and urged remaining firms to take advantage of the extension.
The e-invoicing rollout will occur in phases, with medium and small businesses scheduled for future integration. This initiative is part of the Federal Government’s wider reforms under the Nigeria Revenue Services Reform Act, which aims to unify revenue reporting, reduce evasion, and align with global best practices.
The FIRS e-Invoicing Implementation Team will continue hosting stakeholder engagements — including webinars, workshops, and town hall meetings — to ensure a smooth transition before the November deadline.
President Bola Tinubu has intensified efforts to close tax loopholes through sweeping fiscal reforms. His Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, is addressing issues such as multiple taxation, poor coordination, and systemic gaps.
From January 2026, four new laws — including the Nigeria Tax Act and Tax Administration Act — will take effect, introducing digital taxpayer registration, stricter reporting requirements, and mandatory disclosure of beneficial ownership to unmask hidden income in shell companies. These measures will also mandate transparency for transactions structured primarily to gain tax advantages.
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