The Nigerian Federal Inland Revenue Service (FIRS) is set to roll out its e-invoicing system in phases starting in July 2025, starting with a pilot phase for selected large taxpayers.
In September 2024, FIRS announced plans to introduce mandatory e-invoicing through a new digital system called FIRS e-invoice. This system will enable businesses to generate, validate, store, and exchange invoices in real-time, improving efficiency, transparency, and compliance within Nigeria’s tax administration.
An invoice is defined as a structured digital record of a transaction between a supplier and a buyer, replacing traditional paper-based and multi-format electronic invoices. The national e-invoicing platform, known as the Merchant Buyers’ Service Solution (MBS), utilizes BIS Billing 3.0 UBL for e-invoice exchange across platforms.
The mandate is expected to cover domestic and cross-border B2B, B2G and B2C transactions. For B2B and B2G transactions, FIRS will introduce a continuous transaction controls (CTC) clearance model requiring suppliers to transmit invoice data for clearance to FIRS before sending it to the buyer. Once cleared, the e-invoices will receive an invoice reference number (IRN) and a Cryptographic Stamp Identifier (CSID) to ensure the authenticity and integrity of the invoices; subsequently, they can be exchanged with buyers using Access Point Providers (APP).
B2C transactions must rather be e-reported to FIRS. After issuing the invoices to the buyer, suppliers must report them to FIRS within 24 hours using APPs. B2C invoices will have a QR code which buyers can use to validate the invoices they receive.
Service providers will be required to be accredited by the National Information Technology Development Agency (NITDA). NITDA has established comprehensive pre- and post-accreditation requirements for system integrators and APPs.
FIRS is rolling out e-Invoicing in phases, starting with large taxpayers, followed by medium and small businesses. To ensure a smooth transition, FIRS has invited stakeholders from various industries to share feedback on the initiative. Interested parties can submit their opinions via a survey on the FIRS website.
For future updates on Nigeria’s e-invoicing mandate and developments in other countries, visit our Regulatory Analysis page.
