Tax reform: FIRS to kick off e-invoicing for taxpayers July 25

The Federal Inland Revenue Service (FIRS) has commenced onboarding of large taxpayers onto its Merchant Buyer Solution (MBS) interface, ahead of the full-scale launch of Nigeria’s National E-Invoicing system on July 25, 2025.

Designed to replace traditional invoicing methods, the MBS provides a digital platform for recording transactions between suppliers and buyers.

According to FIRS, the system marks a pivotal shift in Nigeria’s tax administration, offering a fully digital and standardised invoicing format for VAT-registered businesses.

Sodiq Arogundade, the lead consultant on the MBS project, confirmed the system’s readiness after a meeting with stakeholders in the oil and gas midstream sector in Lagos.

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“The system is ready, it’s completely ready. We have several large taxpayers piloting at the moment—some are ready to go live,” he said.

The MBS, built as a restful API system, allows businesses to generate electronic invoices, credit notes, and debit notes in compliance with Section 25, Part 5 of the Tax Administration and Enforcement Act 2007.

While the official launch is set for July 25, Arogundade emphasised that integration is voluntary at this stage.

“There is no mandatory use of e-invoicing at the moment. The system will be fully available for whoever is interested. Businesses have the freedom to enable themselves on the portal and begin generating e-invoices,” he explained.

To ensure ease of adoption, the FIRS is working closely with Original Equipment Manufacturers (OEMs) to develop middleware services. These tools are expected to simplify businesses' integration processes, reducing the need for extensive software overhauls.

“You don’t need heavy software or a complete change management process. Just log into the system, activate the invoicing plugin, and you’re connected,” Arogundade noted.

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Richard Kimeku, FIRS Director of Technology, highlighted the broader implications of the e-invoicing project.

“It’s not just a tool for tax—it’s a tool of transaction. We’ll now have data on transactions that can inform human resources, market trends, and national security,” he said.

Kimeku stressed that the platform would boost transparency and limit tax evasion.

“With e-invoicing, issues like turnover suppression will disappear. It gives us a better view of transactions and a clearer picture of actual tax liabilities.”

The e-invoicing project is one of FIRS’s key initiatives to modernise tax administration and enhance revenue collection through digital innovation.