The Federal Inland Revenue Service (FIRS) has introduced a groundbreaking electronic invoicing (e-invoicing) solution aimed at revolutionizing tax administration in Nigeria.
The Merchant-Buyer Solution (MBS) platform marks a significant step toward modernizing revenue collection and enhancing transparency in commercial transactions. Following a successful pilot program that began in November 2024, the system is designed to align Nigeria’s tax processes with global best practices, supporting the Federal Government’s goals of reducing tax evasion and improving revenue reporting.
The e-invoicing initiative initially targets large taxpayers, defined as companies with an annual turnover of N5 billion or more. Within just two weeks of the platform’s launch, 1,000 of the 5,000 eligible firms—representing 20%—had already begun integrating with the MBS platform.
MTN Nigeria led the way as the first company to successfully transmit a live electronic invoice, setting a precedent for other major corporations. Companies such as Huawei Nigeria and IHS Nigeria are also preparing to adopt the system, signaling strong early momentum for the initiative.
To ensure a smooth transition, FIRS has extended the initial compliance deadline from August 1 to November 1, 2025, in response to operational challenges faced by some businesses. This three-month grace period is intended to encourage voluntary compliance and provide ample time for companies to adapt to the new system.
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FIRS has emphasized its commitment to supporting taxpayers during this transition, recognizing the importance of a seamless rollout for the success of the e-invoicing program.
To facilitate adoption, FIRS has partnered with the National Information Technology Development Agency (NITDA) to engage service providers who will serve as system integrators. These partners will assist large taxpayers with the onboarding process and ensure efficient transmission of electronic invoices.
The collaboration underscores FIRS’s focus on leveraging technology and expertise to simplify compliance and enhance the user experience for businesses navigating the new platform.
The MBS platform is designed to provide FIRS with real-time visibility into commercial transactions, ensuring the authenticity, accuracy, and completeness of invoices.
While the current phase focuses on large taxpayers, the system will eventually expand to include medium and emerging taxpayers, broadening its impact across Nigeria’s economy. By streamlining tax administration and curbing revenue leakages, the e-invoicing solution positions Nigeria as a leader in modern tax practices, fostering a more transparent and efficient fiscal environment.
