The Federal Government has officially launched the National Electronic Fiscal System (EFS) to modernise tax administration, combat evasion, and improve transparency in Nigeria’s revenue collection.
The initiative, driven by the Federal Inland Revenue Service (FIRS), went live on August 1, 2025 following a successful pilot phase that began in November 2024. The EFS integrates an advanced electronic invoicing solution, known as the Merchant-Buyer Model (MBM), designed to streamline tax compliance while giving the FIRS real-time visibility into commercial transactions.
First Phase Targets Large Taxpayers
The rollout begins with large companies earning ₦5 billion and above annually, ensuring invoice authenticity, accuracy, and completeness.
In a statement on Sunday, Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, revealed that within two weeks of launch, over 1,000 companies — representing 20% of the more than 5,000 eligible firms — have already integrated with the FIRS MBS platform.
The deadline for the remaining large taxpayers to onboard has been extended from August 1 to November 1, 2025, to accommodate firms facing operational constraints despite genuine compliance efforts.
“MTN Nigeria became the first taxpayer to transmit live electronic invoices to the FIRS, officially ushering in the e-invoicing era. Huawei Nigeria and IHS Nigeria have also completed test transmissions and will go live in the coming days,” the statement read.
Strategic Partnerships to Aid Integration
The FIRS, working with the National Information Technology Development Agency (NITDA), has onboarded service providers to act as system integrators and access point providers. These partners will assist taxpayers with onboarding, integration, and invoice transmission processes.
The revenue agency commended tax consultants, large taxpayers, and service providers for their cooperation, urging remaining eligible companies to comply before the November deadline.
Phased Rollout for Medium and Emerging Businesses
After large taxpayers, the EFS will extend to medium-sized and emerging businesses, aligning with global best practices. The system supports the Nigeria Revenue Services Reform Act, which seeks to harmonise revenue reporting, strengthen revenue assurance, and reduce tax leakages.
The FIRS e-Invoicing Implementation Team will continue holding stakeholder engagements, webinars, workshops, and town halls to ensure a smooth transition.
Part of Tinubu’s Broader Tax Reform Agenda
President Bola Tinubu has prioritised tightening Nigeria’s tax net through sweeping reforms aimed at reducing revenue losses caused by evasion, multiple taxes, and poor coordination.
He established the Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele, to address systemic inefficiencies and block loopholes.
From January 2026, four new laws — including the Nigeria Tax Act and Tax Administration Act — will take effect. These laws will:
- Introduce digital taxpayer registration
- Enforce stricter reporting rules
- Mandate beneficial ownership disclosure to expose hidden income behind shell companies
- Require transparency for transactions primarily structured to gain tax advantages
