The Nigeria Revenue Service (NRS) says the introduction of electronic invoicing will improve tax compliance, reduce revenue leakages and enhance transparency in tax administration.
Mr Mohammed Bawa, Project Leader of the NRS E-Invoicing Project, said this at the DigiTax E-Invoicing Compliance Breakfast Session held in Lagos on Tuesday.
The hybrid event was organised by DigiTax, an NRS-accredited e-invoicing platform, to support ongoing stakeholders’ education and sensitization on the mandate.
The event had in attendance heads of tax and finance organizations, among other stakeholders.
Bawa who joined virtually, said the initiative aligned with global trends in tax digitisation and would help Nigeria improve its tax-to-GDP ratio.
He said the system would provide the NRS with greater visibility into transactions across sectors and help formalise activities in the informal economy.
According to him, e-invoicing will standardize invoice formats nationwide using globally recognised invoice schemes.
He added that the initiative would improve efficiency for businesses and tax authorities alike.
Bawa said the framework would support the transition from manual and electronic tax administration to a fully automated system-to-system interaction model.
He explained that the Nigeria Tax Administration Act provides the legal framework for implementation and prescribes penalties for non-compliance.
According to him, the NRS has completed onboarding for large taxpayers and is preparing to enforce compliance among defaulting entities.
Bawa said medium taxpayers would begin compliance in the third quarter of 2026, while onboarding of emerging taxpayers would commence in 2027.
He said the NRS targets full adoption of e-invoicing by all taxpayers before the end of 2028.
Bawa urged taxpayers yet to onboard to begin the process and work with accredited service providers to achieve compliance.
Also speaking, Mr Olumide Akinsola, Country Director of DigiTax Nigeria, described e-invoicing as a regulatory mandate aimed at improving tax administration and transparency.
Akinsola said the initiative would help raise Nigeria’s tax to GDP ratio while simplifying business processes and tax compliance.
According to him, the framework would simplify audits, improve record keeping and support faster processing of tax refunds and claims.
He warned that businesses that failed to transmit invoices through the approved framework would be unable to claim VAT input credits on such transactions.
Akinsola said the system would create a transparent audit trail and reduce disputes between taxpayers and the tax authority.
He added that the framework would also help government identify businesses that were underpaying taxes and ensure compliance with tax obligations.
According to him, the initiative would expand the tax net while ensuring taxpayers paid only what was due based on verifiable records.
He explained that implementation was being carried out in phases, beginning with large taxpayers with annual turnover of N5 billion and above.
Akinsola said medium taxpayers with annual turnover of between N1 billion and N5 billion would follow.
He added that smaller and emerging taxpayers would be integrated later under separate implementation schedules.
According to him, each taxpayer category would undergo stakeholders engagement, onboarding and monitoring before enforcement begins.
Akinsola noted that the NRS conceived and manages the project under provisions of the Nigeria Tax Administration Act and the Nigeria Tax Act.
He said DigiTax operates as an NRS licensed service provider and equally serving as both a system integrator and an access point provider.
According to him, DigiTax helps businesses configure their enterprise resource planning systems and transmit invoices to the Merchant Buyer Solution platform.
He added that the NRS continued to issue guidelines and refine implementation based on feedback from businesses and service providers.
Also speaking, Mr Alexander Ogunsina, IT Project Manager at D’Accubin Solutions, said Nigeria’s e-invoicing framework was built on international standards.
Ogunsina listed the standards as PEPPOL, BIS 3.0 and UBL 2.1.
He said alignment with these standards would ensure Nigerian invoices remained compatible with international trade requirements.
