Nigeria has entered a decisive new phase in tax administration. The Nigeria Revenue Service NRS has issued a public notice outlining the phased implementation of its E-Invoicing and Electronic Fiscal System (EFS), with the programme already underway for large taxpayers and scheduled to expand to medium and emerging taxpayers over the coming years.
Also known as the Merchant Buyer Solution (MBS), the initiative fundamentally changes how businesses generate, transmit, authenticate, and store invoice data. With large taxpayers already onboarded and enforcement timelines now clearly mapped out, Nigerian enterprises must begin preparing for a fully digital fiscal environment
A New Era of Digital Tax Compliance
Electronic invoicing replaces paper-based billing with structured digital exchange of invoices, credit notes, and debit notes between buyers and sellers through integrated systems. By digitizing invoicing and enabling secure transmission through accredited platforms, the reform is expected to reduce tax leakages and underreporting, improve audit efficiency and revenue assurance, strengthen transparency across supply chains and simplify compliance through automation and interoperability.
For businesses, this marks a clear shift toward technology driven compliance, where invoicing, reconciliation, reporting, and authentication become part of a unified digital workflow.
How Nigeria’s E Invoicing Rollout Evolved
Nigeria’s move toward electronic fiscalisation has unfolded gradually as part of a broader digital tax transformation agenda:
- 2021- Authorities signaled plans to connect automated tax systems to taxpayers’ electronic records, laying early groundwork for digital monitoring.
- 2024- Mandatory e invoicing policy direction emerged through the Merchant Buyer Solution framework.
- January 2025- Pilot deployment began with selected large taxpayers to validate integrations and data transmission.
- August 2025- Official go live for large taxpayers marked the transition from preparation to live fiscal reporting.
- 2026 to 2028- Phased nationwide expansion covering go-live and enforcement for medium (2027) and emerging (2028) taxpayers.
This consultation pilot, which aims to stabilise and enforce pathways, reflects international best practices for national fiscalisation programs.
Read more: Navigating the Future of Tax Compliance: FIRS to Roll Out E-Invoicing in Nigeria
The Legality: What Gives NRS the Authority
A major question business often ask is what makes this mandatory.
According to the NRS public notice on the EFS rollout, the programme is anchored in Nigeria’s tax administration legal framework. Section 23 of the Nigeria Tax Administration Act (NTAA) empowers the Service to deploy technology for efficient tax administration and collection, while Section 158 of the Nigeria Tax Act (NTA) mandates taxpayers to implement the fiscalisation system deployed by the Service.
Taken together, these provisions establish the basis for NRS to introduce and enforce a digital fiscal regime across taxpayer categories, particularly where compliance depends on structured invoice data and electronic reporting.
Separately, Nigeria’s technical and ecosystem governance is supported by the National Regulatory Guideline for Electronic Invoicing in Nigeria 2025 issued by NITDA, which
- Applies to regulators, accredited service providers, and all entities generating or processing electronic invoices.
- Defines the operational roles of Access Point Providers and System Integrators.
- Establishes compliance, licensing, monitoring, and enforcement structures within the e-invoicing ecosystem.
These elements collectively confirm that E Invoicing under EFS is a statutory compliance requirement and not optional modernization.
Phased Rollout Timeline
To ensure operational readiness, NRS is implementing EFS in structured phases aligned with turnover thresholds.
Large Taxpayers Above ₦5 Billion
- Go live: August 2025.
- Post goes live review: January to March 2026.
- Compliance enforcement: April to June 2026.
Large enterprises are already transmitting invoice data and setting the pace for national adoption.
Medium Taxpayers ₦1 Billion to ₦5 Billion
- Stakeholder engagement: January to March 2026.
- Pilot rollout: April to June 2026.
- Go live: 1 July 2026.
- Compliance enforcement: January to March 2027.
Preparation timelines for this segment are now time critical.
Emerging Taxpayers Below ₦1 Billion
- Stakeholder engagement: January to March 2027.
- Pilot rollout: April to June 2027.
- Go live: 1 July 2027.
- Compliance enforcement: January to March 2028.
Although timelines are longer, early readiness significantly reduces disruption risk.
What This Means for Businesses
The nationwide mandate represents more than regulation. It is a structural digital transformation of commercial operations. Businesses must prepare to generate invoices in standardised compliant digital formats, transmit data securely via accredited e invoicing access platforms, maintain audit-ready electronic transaction records, and meet ongoing monitoring, reporting, and compliance obligations.
Failure to prepare before enforcement windows may expose organisations to penalties, service disruption, or regulatory action, while early readiness enables faster reporting, reduced errors, improved visibility, and stronger credibility.
The Critical Role of Technology Integration
Compliance is now deeply technology dependent; successful adoption relies on qualified system integrators and secure digital infrastructure operating within Nigeria’s regulated E-invoicing framework.
To support businesses through this transition, Stransact’s technology arm, Doftwerks, has been approved to assist organisations with integration, compliance-ready invoicing workflows, and secure connectivity to the national e invoicing ecosystem.
Through Doftwerks, businesses can:
- Integrate ERP, POS, and accounting systems with compliant e invoicing infrastructure.
- Implement secure authentication, transmission, and audit trail capabilities.
- Accelerate readiness ahead of enforcement timelines.
- Minimise operational disruption during migration to electronic fiscal reporting.
This capability complements Stransact’s broader mission of enabling seamless, compliant, and future-ready financial operations for Nigerian enterprises.
Read more: FIRS E-Invoice Service
Preparing for the Future Now
One conclusion is unavoidable: Electronic invoicing is becoming the default framework for doing business in Nigeria. Organisations that digitise workflows, align with compliant infrastructure, and begin integration early will transition confidently. Those that delay risk last minute disruption as enforcement deadlines approach.
Conclusion
Nigeria’s E-Invoicing rollout marks a decisive step toward a transparent, efficient, and digitally governed tax system. Backed by statutory authority, national technical standards, and phased enforcement, the reform signals a permanent shift in how businesses document and report transactions.
For forward thinking organisations, this is more than compliance. It is an opportunity to modernise finance operations, strengthen governance, and compete in a digital economy.
Through Stransact and its approved technology arm, Doftwerks, Nigerian businesses can navigate this transition with confidence, securely, compliantly, and efficiently.
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