E-Invoicing solution takes shape as FIRS engages stakeholders

In a move to modernise fiscal and transactional processes and promote transparency and accountability in tax management, the Federal Inland Revenue Service (FIRS) has commenced stakeholders' engagement with large taxpayers ahead of the implementation of its Merchant Buyer Solution, an e-invoicing system.

The initiative aims to provide real-time visibility into business transactions and financial data, and it is designed to accurately monitor and evaluate taxable goods and services.

At its stakeholders' engagement in Lagos on Tuesday, February 18, 2025, the FIRS disclosed that the locally developed system would be deployed with large taxpayers and fully operational in August 2025.

In her welcome address, the Coordinating Director of the Large Tax Group, Amina Ado, represented by Olabode Olatunji, said the initiative "Is a strategic step towards fostering efficiency, transparency, and accountability in Nigeria's tax administration system."

Ado highlighted the importance of the Merchant Buyer Solution, saying the e-invoicing system is not just a technological innovation but a strategic enabler that aligns with international best practices.

It ensures seamless tax compliance, reduces revenue leakages, and enhances the ease of doing business in Nigeria.

"FIRS plans to commence the implementation of the pilot phase of this solution with selected Large Taxpayers. The insights gained from this phase will guide the broader implementation, ensuring that the solution is responsive to the needs of taxpayers across various sectors," she said.

FIRS digital evolution

Recalling the tax administration journey from its paper-based era to automation and now digitally integrated systems, Tayo Koleosho, the Chief of Staff to the Executive Chairman of FIRS, during his presentation on 'Modernising Tax Compliance,' said the e-invoicing system would make life easy for all stakeholders.

"It makes compliance easy for all. It makes life easy for everybody. And that is what this point is about. It's about making sure that as you're doing your natural business, you are actually feeding the right data set that can then be automatically exchanged within the tax return side, and then your filing becomes much more seamless and then reduces audits and improves compliance for everybody," Koleosho said.

He explained that the innovation, termed Tax Administration Solution 3.0, would provide "more data for businesses to make intelligent decisions and for the country to shape fiscal and monetary policies."

As the FIRS prepares to implement the solution's pilot rollout, Koleosho enjoined stakeholders to own the initiative by contributing their suggestions and ideas.

"This is to start with generation, collaboration pathfinding, and advice-seeking on this product, so when we finally launch our merchant buyer, e-invoicing, 3.0 product, you will be able to say, 'Yes, I was part of that.

"I gave my contributions, my criticism, and my advice, and all these things were incorporated into this project so that it was built for us.' So that's pretty much why we're here," he stated.

The FIRS asserted that the e-invoicing system leverages the Universal Business Language (UBL) framework, adding that the innovation would facilitate seamless creation, validation and exchange of electronic invoices while adhering to international best practices.