The Federal Inland Revenue Service (FIRS) has intensified its efforts to combat tax evasion and revenue leakages through the introduction of a National E-Invoicing Project, aimed at modernising Nigeria’s tax administration.
The initiative was the focus of a two-day stakeholder engagement held in Lagos, bringing together key players in the manufacturing sector. This engagement is the fifth in a series of meetings FIRS has held with different sectors including oil and gas, financial services, and tax consultants, as part of efforts to ensure the system meets the unique needs of each industry.
Project Manager for the e-invoicing initiative, Mr. Mohammed Bawa, stressed the importance of the manufacturing industry to Nigeria’s economy, noting that their cooperation is vital to the project’s success.
“The manufacturing sector is the heartbeat of commerce and trade in Nigeria. We cannot succeed in this project without your support,” Bawa said.
He added that the FIRS is committed to working with manufacturers to ensure that the system supports both government revenue goals and ease of doing business for the private sector.
Speaking at the session, FIRS Director of Project Delivery, Mr. Kunle Olley, explained that the main aim of the e-invoicing project is to build trust between taxpayers and the FIRS, and to promote transparency in the tax system.
“We’re not here to penalise anyone,” Olley said. “We want to work with businesses to automate tax processes, reduce loopholes, and ensure compliance in a simple and efficient way.”
He described the initiative as a “game-changer” for Nigeria’s tax framework, pointing out that it would help to reduce tax evasion and improve accountability in commercial transactions.
The new e-invoicing system, called the Merchant Buyer Solution (MBS), is designed to capture invoices digitally, ensuring tax obligations are automatically recorded and monitored.
Lead Consultant on the project, Mr. Sadiq Arogundade, gave a detailed presentation on how the MBS will work. He explained that the solution allows businesses to issue standard invoices in a globally recognized Universal Business Language (UBL) format.
“These invoices can be used for both local and international transactions. They ensure trust, reduce errors, and make compliance easier,” Arogundade noted.
He added that the MBS platform will solve issues related to delayed payments, incorrect tax filings, and inefficiencies that have long hindered smooth tax compliance.
In addition, the system will provide real-time data to FIRS, allowing it to monitor tax compliance and make better policy decisions.
The stakeholder forum provided room for open discussions and feedback from industry representatives, who were encouraged to contribute to fine-tuning the rollout process.
FIRS plans to continue similar engagements with other sectors such as small and medium enterprises (SMEs) and downstream industries in the coming weeks.
The e-invoicing project is part of a broader reform under the National Tax Policy aimed at increasing government revenue, improving compliance, and creating a fair and efficient tax system for all Nigerians.
