NRS Sets Firm Timeline for Nationwide e-Invoicing Compliance
Atume Terfa
Nigeria’s tax administration is undergoing one of its most significant technological shifts yet, as the Nigeria Revenue Service (NRS) rolls out a structured electronic invoicing system designed to digitise transactions, curb revenue leakages, and strengthen regulatory oversight.
Under the new framework — known as the E-Invoicing and Electronic Fiscal System (EFS) or Merchant Buyer Solution (MBS) — traditional paper invoices will give way to real-time digital records transmitted directly to the tax authority. The initiative signals a decisive move toward data-driven compliance and a modern fiscal ecosystem.
Tiered Rollout with Clear Benchmarks: To ease the transition, the NRS has adopted a phased implementation model based on company turnover, allowing businesses of varying sizes to adapt at different stages.
Large Taxpayers (₦5 billion and above): This category has already completed pilot and engagement phases, with the system going live on 1 August 2025. The compliance deadline was extended to November 2025 to give companies time to stabilise operations. Full enforcement — requiring seamless real-time data transmission — is expected to commence from April 2026, following a post-implementation review.
Medium Taxpayers (₦1 billion to ₦5 billion): Consultations begin in early 2026, with pilot testing slated for the second quarter. The official go-live date is set for 1 July 2026, while compliance enforcement is projected for January 2027.
Emerging Taxpayers (Below ₦1 billion): Engagement with this segment will commence in January 2027. Pilot exercises and gradual system onboarding will run through the year, with full enforcement anticipated in early 2028.
Officials emphasise that enforcement will only begin after adequate stakeholder engagement, testing, and system reviews — a strategy aimed at reducing disruption while ensuring readiness.
The digital invoicing system requires businesses to generate invoices through an approved electronic platform, ensuring that each transaction is automatically recorded and accessible to the NRS in real time.
Key objectives include: Strengthening revenue assurance and reducing tax evasion.
Enhancing transparency for both taxpayers and regulators. Simplifying compliance procedures and lowering long-term administrative costs.
The initiative is anchored in provisions of the Nigeria Tax Administration Act and the Nigeria Tax Act, which empower the tax authority to deploy technology-based fiscal systems and mandate their adoption nationwide.
To drive adoption, the NRS is working closely with the National Information Technology Development Agency (NITDA) and accredited system integrators. These partnerships aim to help businesses seamlessly integrate their Enterprise Resource Planning (ERP) and accounting platforms with the national e-invoicing system.
Stakeholder forums, technical support frameworks, and integration guidance are also being deployed to ensure that companies understand their obligations and meet compliance deadlines without operational setbacks.
As the phased rollout gathers momentum, Nigeria’s tax environment is shifting toward a more transparent, technology-driven future, one where digital footprints replace paperwork and compliance becomes both smarter and more measurable.
