By Andrew Haruna | Abuja | Nigeria News Today
The Federal Government has officially commenced the rollout of the Electronic Fiscal System (EFS) to modernise Nigeria’s tax administration, curb evasion, and enhance transparency in revenue collection, The Bureau News reports.
According to the Federal Inland Revenue Service (FIRS), the EFS, which features an electronic invoicing platform called the Merchant-Buyer Model (MBM), went live on August 1, 2025, following a successful pilot phase that began in November 2024.
“MTN Nigeria became the first taxpayer to transmit live electronic invoices to the FIRS, officially ushering in the e-invoicing regime,” the agency stated. “Huawei Nigeria and IHS Nigeria have also completed test transmissions and are set to go live in the coming days.”
Large Companies Targeted First
The first phase of the EFS targets large companies with annual turnovers of ₦5 billion and above, offering taxpayers a faster, more transparent compliance process while providing FIRS with real-time transaction visibility.
At least 1,000 companies—20% of the 5,000 eligible—have already onboarded. The deadline for the remaining firms to integrate with the FIRS MBM platform has been extended from August 1 to November 1, 2025 to accommodate genuine operational challenges.
Support & Collaboration
In partnership with the National Information Technology Development Agency (NITDA), the FIRS has integrated service providers into the ecosystem as system integrators and access point providers to assist with onboarding and e-invoice transmission.
The phased rollout will see medium-sized and emerging businesses onboarded after the large taxpayer category. This initiative aligns with global best practices and supports the Federal Government’s broader goals under the Nigeria Revenue Services Reform Act.
Reform Agenda Under President Tinubu
President Bola Ahmed Tinubu has prioritised tightening Nigeria’s tax net through sweeping reforms. His Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele, is tasked with eliminating multiple taxes, improving coordination, and plugging loopholes.
From January 2026, four new laws—including the Nigeria Tax Act and Tax Administration Act—will take effect, mandating digital registration, beneficial ownership disclosure, and stricter reporting rules to expose hidden income and curb aggressive tax avoidance.