The Federal Government of Nigeria has officially rolled out the Electronic Fiscal System (EFS), a transformative initiative aimed at modernizing tax administration, curbing tax evasion, and boosting transparency in revenue collection, the Federal Inland Revenue Service (FIRS) announced on Sunday, August 10, 2025.
The system, featuring an electronic invoicing platform known as the Merchant-Buyer Model (MBM), went live on August 1 following a successful pilot phase launched in November 2024.
The EFS targets large corporations with annual turnovers of ₦5 billion and above in its initial phase, with over 1,000 companies—representing 20% of the 5,000 eligible firms—already integrated into the platform within two weeks of its launch.
MTN Nigeria became the first taxpayer to transmit live electronic invoices, marking a milestone in the e-invoicing regime, while Huawei Nigeria and IHS Nigeria are set to follow soon after completing test transmissions.
The platform provides real-time visibility into commercial transactions, ensuring invoice authenticity and simplifying tax compliance for businesses.
To accommodate operational challenges, the FIRS extended the compliance deadline from August 1 to November 1, 2025, urging remaining eligible companies to onboard promptly.
In collaboration with the National Information Technology Development Agency (NITDA), the FIRS has engaged service providers as system integrators and access point providers to support taxpayers with integration and invoice transmission.
The EFS aligns with President Bola Tinubu’s broader tax reform agenda, driven by the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele.
Starting January 2026, four new laws—including the Nigeria Tax Act and Tax Administration Act—will enforce digital registration, stricter reporting, and mandatory disclosure of beneficial ownership to curb hidden income and aggressive tax avoidance.
The initiative supports the Nigeria Revenue Services Reform Act, aiming to harmonize revenue reporting and enhance fiscal accountability.
“The e-invoicing platform is a game-changer, reducing leakages and aligning Nigeria with global best practices,” said Dare Adekanmbi, Special Adviser on Media to FIRS Chairman Zacch Adedeji.
The FIRS is conducting webinars, workshops, and town hall meetings to ensure a smooth transition for stakeholders.
With Nigeria’s tax-to-GDP ratio lingering at just over 10%, experts believe the EFS could significantly boost non-oil revenue amid economic pressures, paving the way for a more robust and transparent tax system.
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