The Federal Government has launched a national Electronic Fiscal System to modernise Nigeria’s tax administration, tackle evasion, and boost transparency in revenue collection.

The Federal Inland Revenue Service said the platform, featuring an electronic invoicing tool called the Merchant-Buyer Model, went live on August 1, 2025, following a pilot phase that began in November 2024.

The first phase covers large firms with annual turnovers of ₦5 billion and above, enabling faster, easier, and more transparent tax compliance while giving FIRS real-time access to transaction data and ensuring invoice authenticity and accuracy.

According to FIRS media aide Dare Adekanmbi, about 1,000 companies—20% of the over 5,000 eligible—have already signed on and begun integrating with the MBS platform in under two weeks since launch.

The remaining large taxpayers must complete onboarding and integration before the new deadline of November 1, 2025, following a three-month extension granted to firms that made genuine efforts to meet the original August 1 date but faced operational constraints.

“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 revenue agency said.

In partnership with the National Information Technology Development Agency, the FIRS has engaged service providers to serve as both system integrators and access point providers, helping taxpayers with onboarding, integration, and invoice transmission.

The FIRS praised large taxpayers, tax consultants, and service providers for their cooperation and commitment to the project’s success, urging all remaining eligible firms to use the extended deadline to comply.

The e-invoicing solution is being deployed in phases, with medium-sized and emerging businesses to follow after the large taxpayer segment. It aligns with global best practices and advances the Federal Government’s goals of strengthening revenue assurance, curbing tax evasion, and unifying revenue reporting under the Nigeria Revenue Services Reform Act.

President Bola Tinubu has intensified efforts to tighten Nigeria’s tax net with a sweeping reform agenda aimed at curbing evasion and streamlining fragmented revenue collection. He established the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, to address multiple taxation, poor coordination, and systemic loopholes.

Starting January 2026, four new laws—including the Nigeria Tax Act and the Tax Administration Act—will take effect, introducing digital registration, stricter reporting requirements, and mandatory disclosure of beneficial ownership to uncover hidden income behind shell companies.

They also mandate transparency for transactions structured primarily to secure tax advantages.