Nigeria to Launch Pilot E-Invoicing Program in Second Half of 2025

March 11, 2025

Last September, the Nigerian Federal Inland Revenue Service (FIRS) announced its plans to implement mandatory B2B, B2C, and B2G e-invoicing. However, the timeline for implementing this new e-invoicing system has not been stated. In the last meeting with key stakeholders, the FIRS announced its plan to launch a pilot program in the second half of the year.

The nationwide e-invoicing system, known as the Merchant Buyers’ Service Solution, aims to ensure transparency and accountability in Tax Administration, enhance tax compliance, and increase state revenue.

Implications for Taxable Persons

The first companies to participate in the pilot e-invoicing programs are the largest taxable persons with large ERP systems and a large number of daily and monthly transactions. As the FIRSe Chief of Staff stated, integrating these large taxable persons, such as Huawei, and the FIRS will last at least six months.

Therefore, since some companies have already started the integration process, the pilot program could begin in July of this year once the integration is completed.

Once the pilot program is completed, the result and feedback from the implementation process will serve as guidelines for broader implementation of the mandatory e-invocing system for medium and small taxable persons.

However, it remains to be seen when e-invoicing will become mandatory. Nevertheless, depending on the pilot program's success, information on when other groups of taxable persons will have to meet e-invoicing requirements could be known in the second part of the year. Additionally, it remains to be seen if the rollout will be phased, or medium and small taxable persons simultaneously become subject to these requirements.

Conclusion

The Nigerian government and FIRS, as the governing body, continue to work on introducing nearly real-time reporting, which should increase the efficiency of monitoring all transactions, whether online or offline. The introduction and implementation of mandatory e-invoicing are part of the Tax Administration and Enforcement Act of 2007 initiative, which is not entering its third phase.

Source: VATabout, Vanguard

What is Nigeria’s e-invoicing pilot program?

The Nigerian Federal Inland Revenue Service (FIRS) will launch a pilot e-invoicing system in 2025 to enhance tax compliance and transaction transparency.

Who will participate in the initial phase of the e-invoicing program?

Large businesses with extensive ERP systems and high transaction volumes, such as Huawei, will be the first to integrate with the FIRS system.

When will e-invoicing become mandatory in Nigeria?

There is no set date yet, but after the pilot program’s success, the FIRS will determine when medium and small businesses must comply.

How will e-invoicing impact taxable businesses in Nigeria?

Businesses will need to integrate with the FIRS system for real-time transaction reporting, improving tax transparency and compliance.

What is the purpose of Nigeria’s e-invoicing initiative?

The e-invoicing system aims to reduce tax evasion, enhance monitoring, and increase government revenue through improved VAT reporting.

Will the e-invoicing rollout be phased or apply to all businesses at once?

The FIRS has not confirmed the rollout approach, but it may be phased based on the pilot program’s outcome and stakeholder feedback.

Nigeria

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