7 things to know about the NRS electronic invoicing

The Nigeria Revenue Service (NRS) has begun monitoring compliance with its National E-Invoicing and Electronic Fiscal System (EFS) among large taxpayers, signalling a shift from policy rollout to implementation. While affected companies have until July 31, 2026 to complete onboarding, system integration, validation and invoice transmission, the focus has increasingly turned to the practical realities of complying with the new regime.

Discussions at a recent DigiTax stakeholder session attended by BusinessDay showed that businesses are now less concerned about whether electronic invoicing is coming than about how to implement it. From integrating existing ERP systems to understanding VAT implications and resolving rejected invoices, here are seven technical questions and the answers, that companies should know as compliance monitoring gathers pace.

 

Can my existing ERP or accounting software connect to the NRS platform?

Yes, but the process depends on the system a business currently uses.

According to Olumide Akinsola, country director of DigiTax Nigeria, businesses do not connect directly to the NRS Merchant Buyer Solution (MBS). Instead, integration is done through licensed System Integrators (SIs) and Access Point Providers (APPs) using RESTful APIs.

Some ERP systems can connect directly to the NRS platform, while others require middleware before integration can take place.

“There is no one-size-fits-all approach,” Akinsola said, explaining that implementation begins with understanding how each company’s accounting or ERP system operates before determining the appropriate integration model.

 

What exactly does the NRS consider ‘compliance’?

Compliance goes beyond issuing electronic invoices.

According to the NRS’ latest public notice, large taxpayers are expected to complete onboarding on the Merchant Buyer Solution (MBS), successfully integrate their accounting systems through approved Access Point Providers or System Integrators, complete validation and testing, actively transmit invoices to the NRS platform, and ensure invoices received from suppliers carry a valid Invoice Reference Number (IRN).

The notice also advises companies yet to complete implementation to urgently conclude outstanding onboarding and integration activities before enforcement actions commence.

 

How difficult is implementation in practice?

For companies already live on the platform, implementation appears less challenging than many expected.

Speaking to BusinessDay on the sidelines of the DigiTax event, Dapo Adeyemi, Applications Manager, ERP at Evacare Health, said the healthcare company completed its integration before the compliance deadline and now automatically transmits invoices generated on its ERP system to the NRS every day.

“The integration has been seamless so far,” Adeyemi said, adding that every invoice transmitted receives feedback from the NRS showing whether it has been validated or digitally signed.

He credited much of the smooth implementation to the company’s existing ERP capabilities and support received during the integration process.

 

What are businesses struggling with after going live?

Technology itself may not be the biggest obstacle.

According to Adeyemi, the more significant challenge has been validating customer information as the NRS transitions from the old Tax Identification Number (TIN) to the new Tax ID.

Where customer details fail validation, invoices are rejected, forcing businesses to return to customers to confirm their information before retransmitting the invoice.

Because businesses have a limited window to correct failed transmissions, delayed responses from customers can create operational bottlenecks even after successful system integration.

 

How much does implementation cost?

There is no standard price.

Akinsola said implementation costs vary depending on the size of the organisation, the number of invoices processed, existing technology infrastructure and the complexity of integration.

In addition to integration costs, businesses should also expect charges linked to invoice transmission, which are typically based on transaction volumes.

For that reason, implementation costs differ significantly from one organisation to another.

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Do businesses need e-invoices to claim input VAT today?

Not yet.

Mohammed Bawa, Project Manager, NRS e-Invoice Solution, said the automated input VAT verification process has not yet commenced because many taxpayers are still being onboarded.

“We’ve not automated that process of claiming input VAT yet,” Bawa said during the stakeholder session.

For now, businesses should continue filing VAT returns and claiming input VAT under the existing process.

However, Bawa explained that invoice data currently being transmitted to the NRS will eventually support automated verification once the tax authority determines that enough taxpayers have adopted the system. At that stage, validated electronic invoices are expected to play a central role in input VAT verification and compliance monitoring.

 

Will e-invoicing replace tax audits?

Not immediately, but it is expected to fundamentally change how audits are conducted.

According to Bawa, the current priority is driving adoption of electronic invoicing. Existing filing and payment processes remain in place while businesses continue integrating with the platform.

Over time, however, the NRS expects invoice validation, tax filing, payment and reconciliation to become increasingly connected through digital systems, allowing invoice data to serve as a single source of truth for tax administration.

Akinsola added that the long-term objective is to enable businesses to issue invoices, reconcile transactions, upload schedules, make payments and receive confirmations through integrated digital platforms, reducing manual reconciliations and improving audit readiness.

 

For businesses, the transition to electronic invoicing is proving to be less about buying new software than getting people, processes and data ready. While the NRS continues onboarding taxpayers and refining the system, early adopters say the real test lies in integrating existing systems, maintaining accurate customer records and ensuring suppliers are equally compliant.