The Federal Inland Revenue Service (FIRS) has announced that it will begin full implementation of the National Electronic Invoicing (e-Invoicing) system for large-scale taxpayers on August 1, 2025.

The system, also referred to as the Electronic Fiscal System (EFS), will apply to businesses with an annual turnover of ₦5 billion and above. According to FIRS, the platform will function using a Merchant-Buyer model, aimed at enhancing transparency, real-time monitoring of taxable transactions, and aligning the country’s tax system with international standards.

This development signals the end of the voluntary pilot phase which began in November 2024, during which selected large taxpayers were onboarded. FIRS also held consultative sessions across major economic sectors to gather stakeholder feedback and ensure a smooth transition. Tax professionals, industry groups, and financial consultants participated in the engagements.

In a statement issued by the Executive Chairman of FIRS, Dr. Zacch Adedeji, all eligible businesses are now required to register on the e-Invoicing platform and integrate their invoicing systems with FIRS to enable real-time invoice generation, validation, and electronic submission.

“The full deployment of the national e-Invoicing system is a strategic step to improve tax transparency, reduce leakages, and build a modern, efficient tax administration in Nigeria,” Dr. Adedeji stated.

The e-Invoicing system is part of the federal government’s broader plan to digitize tax administration and improve revenue collection through automation.

Requirements for Affected Businesses

From August 1, all large taxpayers must:

Register on the official FIRS e-Invoicing portal
Integrate their invoicing systems in accordance with the Merchant-Buyer model
Generate, validate, and transmit invoices in real-time using FIRS-approved digital channels

FIRS warned that failure to comply with the directive could result in penalties under existing tax laws.

Benefits and Objectives

According to the tax agency, the new invoicing system is expected to:

Improve tax compliance across sectors
Enable real-time tracking of sales and services
Prevent revenue leakages from underreported transactions
Promote transparency and efficiency in tax collection
Ensure Nigeria aligns with global e-taxation practices

FIRS said it will continue providing onboarding support, including technical assistance and sector-specific training, to assist affected businesses in meeting the integration deadline.

While the current rollout focuses on large taxpayers, the agency has hinted at possible future expansion of the e-Invoicing regime to cover medium and small-scale enterprises.