5 days ago
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By Chukwuma Umeorah
The Federal Inland Revenue Service (FIRS) has said that its electronic invoicing (e-invoicing) system will play a crucial role in shaping Nigeria’s fiscal and monetary policies by providing real-time transaction data for better economic planning.
Speaking at a stakeholder workshop on pilot phase rollout in Lagos on Tuesday, Chief of Staff to the Executive Chairman of FIRS, Tayo Koleosho, described the initiative as a ‘new journey’ in tax administration, aimed at integrating electronic reporting systems with business processes. According to him, this would improve compliance, streamline operations, and enhance data-driven decision-making for both businesses and the government.
“We are deploying an electronic invoice, also called a merchant buyer service (MBS) solution. This system will provide seamless data exchange between taxpayers and the FIRS, reducing errors and enhancing financial integrity.” He further noted that the project is part of the broader Tax Administration Solution 3.0, which seeks to integrate tax reporting with electronic payment platforms, cloud solutions, and point-of-sale (POS) systems to foster transparency and efficiency.
A key aspect of the e-invoicing system is its potential to transform economic planning by generating real-time data on purchasing behavior, supply chain trends, and overall business activity. Koleosho emphasized the importance of this in shaping government policies, stating, “A lot of data is required for economic planning. With this system, we can aggregate information on buying patterns, supply trends, and manufacturing activities. This will provide insights for the government to make informed fiscal and monetary policy decisions.” The initiative is also expected to improve Nigeria’s ease of doing business by eliminating discrepancies in tax reporting and enhancing financial transparency in both domestic and international transactions.
Director of Taxpayer Services at FIRS, Dr. Lovette Ononuga, explained that the e-invoicing system was being rolled out in phases, beginning with large taxpayers who operate extensive Enterprise Resource Planning (ERP) systems. “This is a pilot project, and we are engaging our largest taxpayers first because they have the most complex systems and transactions. Once we get it right with them, we will expand to medium and small taxpayers,” she said.
She assured businesses that FIRS would provide continuous engagement, town hall meetings, and industry-specific sensitisation efforts to ease the transition. “There is no need for taxpayers to be anxious.
The Taxpayer Services Department is here to guide them through this process. We have a contact center, help desks at tax offices, and will be rolling out FAQs to address concerns,” she added.
On his part, Sadiq Arogundade, Head of Technology at D’Accubin Technology Limited, which developed the e-invoicing platform in collaboration with FIRS, highlighted the broader implications of the initiative. “We are here to talk about business efficiency, financial integrity, and the future of commerce in Nigeria,” he said. “With this initiative, we will be able to derive accurate data on VAT inputs and outputs, consumption patterns, and business transactions.”
He also emphasised that the system would enhance Nigeria’s global competitiveness by standardizing invoices and making them verifiable across international markets. “Invoices are more than just documents; they are the bloodline of business transactions. With this platform, Nigerian businesses will be able to exchange invoices seamlessly with global partners in countries like Sweden and Japan while adhering to international best practices,” he explained.
English (US) ·