The Federal Government has officially launched a nationwide Electronic Fiscal System (EFS), a landmark reform designed to modernise Nigeria’s tax administration, combat evasion, and ensure greater transparency in revenue collection.
The initiative, spearheaded by the Federal Inland Revenue Service (FIRS), introduces an electronic invoicing solution, the Merchant-Buyer Model (MBS), which went live on August 1, 2025 after a successful pilot phase initiated in November 2024.
The initial rollout focuses on large corporate taxpayers with an annual turnover of N5 billion and above. This high-impact segment represents the most significant contributors to government revenue, and the new system provides the FIRS with real-time visibility into commercial transactions, ensuring authenticity, accuracy, and completeness of invoices.
The FIRS confirmed that in less than two weeks of the official launch, 1,000 companies—representing 20% of over 5,000 eligible firms—have integrated with the platform. The remaining large taxpayers must comply by November 1, 2025, following an extension from the original August 1 deadline to accommodate integration challenges faced by some firms.
“MTN Nigeria was the first taxpayer to transmit live e-invoices, marking the start of the new era in tax compliance. Huawei Nigeria and IHS Nigeria have completed successful test transmissions and will go live in the coming days,” the FIRS revealed.
To ensure smooth adoption, the FIRS is working with the National Information Technology Development Agency (NITDA) and certified service providers, who will act as system integrators and access point providers to support onboarding, integration, and invoice transmission.
The agency has also pledged to continue holding stakeholder engagements—webinars, workshops, and town halls—to guide taxpayers through the transition before the November deadline.
The phased rollout will extend to medium and small businesses after the large taxpayer category, aligning Nigeria’s tax systems with global best practices. This reform is part of the broader Nigeria Revenue Services Reform Act, which seeks to harmonise tax reporting, close loopholes, and strengthen revenue assurance.
FIRS Chairman Zacch Adedeji, through his media aide Dare Adekanmbi, emphasised that the platform is not only about plugging leakages but also about creating a simpler, faster, and more transparent tax environment for all stakeholders.
President Bola Tinubu has made fiscal reform a priority, setting up the Presidential Committee on Fiscal Policy and Tax Reforms led by tax expert Taiwo Oyedele. The committee is tasked with eliminating multiple taxation, improving compliance, and boosting Nigeria’s tax-to-GDP ratio.
From January 2026, four new laws—including the Nigeria Tax Act and Tax Administration Act—will come into effect. These laws introduce:
Digital tax registration for all taxpayers
Stricter reporting rules and periodic disclosure of beneficial ownership
Transparency measures to expose shell companies used for tax avoidance
Mandatory reporting for transactions structured to secure undue tax advantages
Nigeria has long battled chronic revenue leakages, with tax evasion and under-reporting costing billions in potential earnings. The E-Fiscal System is seen as a critical tool in reversing this trend, ensuring that both multinational corporations and domestic firms contribute their fair share to national development.
The FIRS has assured that companies complying early will enjoy smoother operational onboarding and reduced compliance disputes, positioning themselves as credible partners in Nigeria’s economic growth.