The Federal Inland Revenue Service (FIRS) has launched a national electronic invoicing system as part of current initiatives aimed at digitalizing the country’s tax system and improving compliance rate among large corporate taxpayers.
The system, known as the Merchant-Buyer Solution (MBS), formally became active on August 1 after a successful pilot phase that began in November 2024.
The MBS is being rolled out in phases, starting with companies that have an annual turnover of at least N5 billion. According to FIRS, these large taxpayers represent over 5,000 businesses nationwide.
A statement issued by the Special Adviser Media to the FIRS’ Chairman, Dare Adekanmbi, on Sunday indicated that over 1,000 companies, representing about 20% of eligible firms, including telecoms giant MTN Nigeria, which became the first to transmit live electronic invoices to the tax authority, had already been integrated into the platform.
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This is even as the spokesman added that other major players such as Huawei Nigeria and IHS Towers were now completing their onboarding and are expected to go live in the coming days.
He stated: “The launch of the e-invoicing regime ushers in a new era of transparency, accuracy, and real-time monitoring of commercial transactions”.
According to him, the e-invoicing solution forms part of the Service’s broader Electronic Fiscal System (EFS), which is designed to ensure authenticity and completeness of invoice data and limit opportunities for tax evasion; and aligns with the recently enacted Nigeria’s Revenue Services Reform Act 2025.
The revenue service confirmed that it was collaborating with the National Information Technology Development Agency (NITDA) to incorporate system integrators and access point providers into the onboarding ecosystem. These providers are tasked with supporting the integration process and helping companies manage their transition onto the e-invoicing platform.
While initially the original deadline for onboarding the EFS was set for August 1, the FIRS has granted a three-month grace period ending in November 1, 2025 to allow companies facing operational challenges to comply.
It further clarified: “In the spirit of encouraging voluntary compliance, the FIRS management has graciously approved a three-month extension of the deadline. We also acknowledge the genuine efforts of many taxpayers who strove to meet the 1st of August 2025 deadline but encountered operational constraints.”
Based on the FIRS’ implementation plan, the system will eventually be extended to small and medium enterprises (SMEs).
