The Nigerian government launched an electronic fiscal system to curb tax avoidance

The federal government has begun the implementation of the National Electronic Fiscal System (EFS) which aims to modernize Nigerian tax administration, curb avoidance, and increase transparency in revenue collection.

The Federal Inland Revenue Service (FIRS) confirmed that EFS, which featured an electronic invoice solution known as the Model of Traders-Buyers (MBM), appeared in the flow on August 1 after the pilot phase which began in November 2024.

In the first phase, the system targets large companies with an annual turnover of ₦ 5 billion and above.

This platform is designed to simplify tax compliance while giving FIR with real-time visibility from commercial transactions, ensuring the authenticity of invoices, accuracy, and completeness.

According to a statement issued on Sunday by Dare AdekanMBI, a special advisor to the media to the Chairperson of FIRS, at least 1,000 companies, representing 20 percent of more than 5,000 companies that meet the requirements, have adopted the system within two weeks of its launch.

These companies have begun to integrate with the FIR MBM platform.

The agency extended the original compliance deadline from August 1 to November 1 to accommodate companies that showed original efforts to meet the initial date but face operational challenges.

Also read: FCTA To Maintain Demolition of Criminal Institution in Abuja

“MTN Nigeria became the first taxpayer to send an electronic invoice to live to FIR, officially delivering the e-Invoicing regime. Huawei Nigeria and IHS Nigeria have also concluded the test transmission and determined to be aired in the coming days,” the statement said.

To support the launch, FIR, in a partnership with the National Information Technology Development Agency, has included service providers into the ecosystem to act as a system integrator and access point provider. These entities will help taxpayers in the integration of onboarding, systems, and invoice transmissions.

FIR praises large taxpayers, tax consultants, and service providers for their cooperation and urges companies that meet the requirements to use the extended deadline to complete integration. The launch will be continued in stages, with medium and new sized businesses to be installed after the large taxpayer segment.

Officials said this initiative was in line with the best global practice and supported the goals of the federal government to increase revenue guarantees, reduce tax avoidance, and harmonize income reporting based on Nigerian revenue service reforms.

The E-Invoicing FIR implementation team will continue to involve stakeholders through webinars, workshops, and meetings of the city hall before the November deadline.

EFS is part of the broader Tinubu Bola Tax Reform Agenda, which seeks to expand the tax nets, closure gaps, and streamline income collection. In 2023, he founded the Presidential Committee on Fiscal Policy and Tax Reform, which was chaired by Taiwo Oyedele, to overcome problems including several taxation, poor coordination, and income leakage.

From January 2026, four new laws, including the Nigerian tax law and tax administration laws, will apply. This law will introduce digital registration, tighter reporting requirements, and a profitable mandatory disclosure to expose the hidden income behind the Shell company. They will also need transparency for transactions that are especially prepared to obtain tax benefits.