FIRS Launches E-Invoicing Solution to Revolutionize Tax Administration in Nigeria
Within the first two weeks, 1,000 of the 5,000 eligible firms (20%) had already begun integrating with the FIRS MBS platform.
The Federal Inland Revenue Service (FIRS) has launched a new electronic invoicing solution (e-invoicing) to modernize Nigeria’s tax administration and improve revenue collection. The system, known as the Merchant-Buyer Solution (MBS), officially went live on August 1, 2025, after a successful pilot program that began in November 2024.
Initially, the platform is being rolled out for large taxpayers, defined as companies with an annual turnover of N5 billion or more. Within the first two weeks, 1,000 of the 5,000 eligible firms (20%) had already begun integrating with the FIRS MBS platform. MTN Nigeria was the first company to successfully transmit a live electronic invoice, with other major firms like Huawei Nigeria and IHS Nigeria preparing to follow suit.
Recognizing that some businesses faced operational challenges, FIRS has extended the initial August 1 deadline for full compliance to November 1, 2025. This three-month extension is meant to encourage voluntary compliance and ensure a smooth transition for all large taxpayers. The agency has also partnered with the National Information Technology Development Agency (NITDA) to incorporate service providers who will act as system integrators and help taxpayers with the onboarding and transmission process.
The national e-invoicing solution is designed to provide FIRS with real-time visibility into commercial transactions, ensuring the authenticity, accuracy, and completeness of invoices. This phased rollout will eventually include medium and emerging taxpayers. The system aligns with global best practices and supports the Federal Government’s broader goals of modernizing tax administration, reducing tax evasion, and harmonizing revenue reporting.
