The Federal Inland Revenue Service (FIRS) has launched a digital e-invoice platform as part of its ongoing strategy to modernise Nigeria’s tax system.
The tax body says this initiative is a critical step toward improving tax administration, compliance, and transparency across the country.
Zacchaeus Adedeji, FIRS’s executive chairman, made this known during the ‘Emerging Tax Matters’ stakeholders’ engagement, which was co-hosted by the Lagos Chamber of Commerce and Industry (LCCI) on Wednesday.
Represented by Oti Olaniyi, acting director of the Medium Taxpayers Department, Adedeji emphasised the importance of technology in transforming Nigeria’s tax processes.
The FIRS e-Invoice is a digital system that will enable real-time validation and storage of transactions across business-to-business, business-to-consumer, and business-to-government channels.
This system promises to address key inefficiencies in Nigeria’s current tax system, which has been plagued by issues such as under-reporting of revenue and delayed payments.
The introduction of electronic invoices represents a significant move away from paper-based processes, reducing human error, increasing accuracy, and ensuring transactions remain digital throughout their lifecycle.
With the e-invoice system, businesses will now exchange documents in a structured data format, allowing for automatic processing which is expected to drive tax compliance significantly.
“This initiative is in line with the Tax Administration and Enforcement Act of 2007 and supports our broader vision of leveraging technology to create a sustainable and equitable tax system,” Adedeji said.
In addition to the e-invoice platform, Adedeji outlined several ongoing reforms within the FIRS, aimed at boosting Nigeria’s economic growth.
These reforms include providing tax incentives to stimulate local industries and improving the transparency of the tax incentive process to ensure alignment with Nigeria’s development goals.
The FIRS chairman also addressed the challenges posed by the country’s large informal sector, noting that simplified tax regimes and registration incentives will be introduced to encourage small and micro-businesses to join the formal tax system.
During the event, LCCI President, Gabriel Idahosa commended the FIRS for its ongoing reforms and emphasised the need for strong collaboration between the public and private sectors.
He noted that Nigeria’s tax system has undergone significant changes in recent years, aiming to simplify compliance, boost revenue, and tackle the country’s fiscal challenges.
“The FIRS has set an ambitious target to increase tax revenue by 57 percent, aiming for N19.4 trillion in 2024,” said Idahosa.
“Achieving this will require coordinated efforts from both the public and private sectors, with policies that support innovation and competitiveness.”
Idahosa also called for policies that encourage tax breaks for wage increases and reduce barriers to foreign currency transactions, fostering a more robust investment environment.
