Learn the details about electronic invoicing in Nigeria

Nigeria is moving forward with the digitalization of its tax processes through electronic invoicing. After implementing a mandatory e-invoicing system for foreign trade operations in February 2022, the country is now preparing to extend this system to domestic transactions. The Nigerian tax authority, the Federal Inland Revenue Service (FIRS), is leading a project to gradually roll out a new nationwide electronic invoicing system aimed at improving tax collection and transparency.

FIRS: the authority responsible for mandatory electronic invoicing in Nigeria

The FIRS (Federal Inland Revenue Service of Nigeria) is the entity responsible for implementing and managing electronic invoicing in the country. It spearheaded the launch of a national digital invoicing platform known as FIRS e-Invoice, also referred to as the Merchant Buyers’ Service (MBS).

This platform enables companies to generate, validate, archive, and exchange invoices in real time, aligning with the FIRS’s digital transformation strategy to increase efficiency, transparency, and tax compliance.

Mandatory phases and implementation schedule

The adoption of e-invoicing in Nigeria will be mandatory in stages, starting with large companies and gradually expanding to all taxpayers. The proposed timeline is as follows:

• November 1, 2025: Mandatory for large companies (annual revenue equal to or greater than ₦5.000 million).
• January 1, 2026: Mandatory for all remaining VAT-registered companies, including medium and small enterprises. (Pending official confirmation).

Electronic invoicing model adopted

Nigeria has opted for a pre-validation model (clearance with continuous controls) for its electronic invoices. In practice, companies must transmit each business-to-business invoice to the FIRS tax portal for approval before delivering it to the buyer. The MBS platform generates an electronic tax document structured according to the UBL standard, thereby unifying the content of invoices according to a common model.

In addition, a QR code is embedded to allow quick verification of the invoice in its printed or PDF versions. This electronic taxation control approach broadly follows the CTC (Continuous Transaction Controls) framework and draws on international references such as the PEPPOL standard adopted in Singapore and the UAE, with the goal of fostering greater standardization and trust in electronic transactions.

Scope of mandatory electronic invoicing in Nigeria: B2B and B2C transactions involved

The new electronic invoicing system in Nigeria will have broad coverage in terms of the types of transactions and economic sectors involved. The mandate will apply to both business-to-business (B2B) and business-to-customer (B2C) transactions, including domestic and cross-border transactions. For these B2B and B2C invoices, the clearance model described above applies: they must be validated by FIRS before being issued to the recipient.

Advantages of a global solution like EDICOM

Complying with Nigeria’s new electronic invoicing requirements may seem challenging, especially for multinational companies operating in multiple countries. In this context, relying on a global e-invoicing solution offers significant advantages. International platforms such as EDICOM's allow businesses to centralize all electronic invoicing processes through a single global provider, while adapting to the legislation of each country. This means that a company can manage electronic invoices from Nigeria along with those from other jurisdictions from the within one integrated system, automatically ensuring local regulatory compliance in every case.

EDICOM's global proposal, for example, already operates in accordance with electronic invoicing requirements in numerous countries around the world, offering a robust and scalable infrastructure. By integrating Nigeria into this platform, companies gain access to connectors and services aligned with FIRS standards (including pre-validation clearance, IRN numbering, QR, etc.) without the need to develop custom solutions.

Centralizing management with an experienced global provider ensures not only legal compliance but also operational efficiency: transactions with clients, suppliers, and administrations are automated from a single environment, reducing errors and operating costs.