The Federal Government has commenced the implementation of a national Electronic Fiscal System (EFS) aimed at modernising Nigeria’s tax administration, curbing evasion, and improving transparency in revenue collection.
The Federal Inland Revenue Service (FIRS) confirmed that the EFS, which features an electronic invoicing solution known as the Merchant-Buyer Model (MBM), came on stream on August 1 following a pilot phase that began in November 2024.
In the first phase, the system targets large companies with an annual turnover of ₦5 billion and above.
The platform is designed to simplify tax compliance while providing the FIRS with real-time visibility of commercial transactions, ensuring invoice authenticity, accuracy, and completeness.
According to a statement issued on Sunday by Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, at least 1,000 companies, representing 20 per cent of over 5,000 eligible firms, have adopted the system within two weeks of its launch.
These firms have begun integrating with the FIRS MBM platform.
The agency extended the original compliance deadline from August 1 to November 1 to accommodate companies that demonstrated genuine efforts to meet the initial date but encountered operational challenges.
“MTN Nigeria became the first taxpayer to transmit live electronic invoices to the FIRS, officially ushering in the e-invoicing regime. Huawei Nigeria and IHS Nigeria have also concluded test transmissions and are set to go live in the coming days,” the statement read.
To support the rollout, the FIRS, in partnership with the National Information Technology Development Agency, has incorporated service providers into the ecosystem to act as system integrators and access point providers. These entities will assist taxpayers in onboarding, system integration, and invoice transmission.
The FIRS commended large taxpayers, tax consultants, and service providers for their cooperation and urged remaining eligible companies to use the extended deadline to complete integration. The rollout will proceed in phases, with medium-sized and emerging businesses to be onboarded after the large taxpayer segment.
Officials said the initiative aligns with global best practices and supports the Federal Government’s objectives of enhancing revenue assurance, reducing tax evasion, and harmonising revenue reporting under the Nigeria Revenue Services Reform Act.
The FIRS e-Invoicing Implementation Team will continue to engage stakeholders through webinars, workshops, and town hall meetings ahead of the November deadline.
The EFS is part of President Bola Tinubu’s broader tax reform agenda, which seeks to expand the tax net, close loopholes, and streamline revenue collection. In 2023, he established the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, to address issues including multiple taxation, poor coordination, and revenue leakages.
From January 2026, four new laws, including the Nigeria Tax Act and the Tax Administration Act, will take effect. These laws will introduce digital registration, stricter reporting requirements, and mandatory disclosure of beneficial ownership to expose hidden income behind shell companies. They will also require transparency for transactions primarily structured to obtain tax advantages.
