4,000+ Major Nigerian Firms Yet to Finalize FIRS E‑Invoicing, Deadline Extended to November
Abuja, Nigeria – More than four thousand of Nigeria’s largest taxpayers have yet to complete their onboarding onto the Federal Inland Revenue Service’s (FIRS) new e‑invoicing platform, even as the system went live earlier this month. In response, FIRS has granted a compliance extension, pushing the final deadline to November 1, 2025.
Slow Adoption Among Key Businesses
The e‑invoicing initiative, known as the Merchant‑Buyer Model, was officially launched on August 1, following a successful pilot phase that began in November 2024. While over 1,000 large taxpayers have since begun integration, representing roughly 20% of the target group, more than 4,000 remain pending in completing the process.
To provide extra time for those still pending integration, FIRS extended the compliance deadline from August 1 to November 1, 2025.
Why Onboarding Matters
FIRS introduced e‑invoicing with twin goals: improving transparency in transactions and closing Nigeria’s persistently low tax‑to‑GDP gap, currently hovering around 10%, by capturing more economic activity and reducing revenue leakages. As one project lead noted, “once businesses formalize, we’ll have more taxpayers in the tax net”. The system also strives to ensure that large enterprises do not continue shouldering a disproportionate share of tax duties due to widespread informal practices.
Key Participants and Infrastructure
FIRS has certified 16 service providers to serve as System Integrators and Access Point Providers (APPs), supporting both onboarding and real-time invoice transfer. Among early adopters, MTN Nigeria, with Huawei and IHS also in the loop, has already transmitted live invoices, signaling the system’s operational readiness.
Implementation Support: Workshops and Technical Assistance
To assist businesses through the transition, FIRS has organized post-launch workshops featuring hands-on technical demonstrations, Q&A sessions, and live support to navigate integration challenges. These sessions emphasize that the November deadline isn’t a buffer for delay but a critical window to ensure system functionality.
Systemic Impact and Strategic Importance
By embedding e‑invoicing into commercial workflows, FIRS gains real-time visibility into transactions, reducing under-declaration and building a robust digital record trail. This initiative aligns with global best practices and becomes a strategic lever for improved fiscal governance .
Moreover, the introduction of structured invoice formats, digital clearance, and invoice reference numbers is expected to enhance accuracy, minimize disputes, and reduce audit burdens. For businesses, the shift promises operational efficiency, tighter control, and better cash-flow visibility.
Concluding Insights
FIRS’s digital invoice framework stands as a pivotal step toward modernizing Nigeria’s tax system. The extension to November offers a crucial opportunity for lagging taxpayers to align with reform objectives, but its success hinges on continued engagement, technical readiness, and stakeholder cooperation.
If the remaining large taxpayers integrate promptly, Nigeria could witness a meaningful shift in revenue mobilization, with wider formalization helping ease the tax burden on compliant enterprises and improving public trust in the tax system.
This e‑invoicing push, combined with enhanced enforcement, transparency, and taxpayer support, could be a game-changer for Nigerian fiscal policy. It’s not just a technological upgrade; it’s a foundational step toward building a more inclusive, efficient, and sustainable tax ecosystem.
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