The Federal Government of Nigeria has introduced a national Electronic Fiscal System (EFS) to modernize the country’s tax administration, curb evasion, and enhance transparency in revenue collection. The EFS, which incorporates an electronic invoicing solution known as the Merchant-Buyer Model, was launched on August 1, 2025, following a successful pilot phase that began in November 2024. This initiative targets large companies with an annual turnover of N5 billion and above.
The platform is designed to make tax compliance easier, faster, and more transparent for taxpayers, providing the Federal Inland Revenue Service (FIRS) with real-time visibility into commercial transactions. This ensures the authenticity, accuracy, and completeness of invoices. In less than two weeks since the launch, at least 1,000 companies, representing 20% of over 5,000 eligible firms, have adopted the system and begun integrating with the FIRS MBS platform. MTN Nigeria was the first taxpayer to transmit live electronic invoices to the FIRS, while Huawei Nigeria and IHS Nigeria have also concluded test transmissions.
The remaining large taxpayers must complete their onboarding and integration before the new deadline of November 1, 2025. The initial August 1 deadline was extended by three months to accommodate companies that faced operational constraints. The FIRS has incorporated service providers into the ecosystem to support onboarding, system integration, and invoice transmission processes for taxpayers. These providers will act as both system integrators and access point providers.
The e-invoicing solution aligns with global best practices and supports the Federal Government’s broader objectives of enhancing revenue assurance, reducing tax evasion, and harmonizing revenue reporting under the Nigeria Revenue Services Reform Act. The FIRS will continue to hold stakeholder engagements, including webinars, workshops, and town hall meetings, to ensure a smooth transition ahead of the November deadline.
This initiative is part of President Bola Tinubu’s sweeping reform agenda targeting evasion and fragmented revenue collection. From January 2026, four new laws, including the Nigeria Tax Act and Tax Administration Act, will take effect, introducing digital registration, stricter reporting rules, and mandatory disclosure of beneficial ownership. These laws aim to expose hidden income behind shell companies and require transparency for transactions structured mainly to gain tax advantages.
