The Nigeria Revenue Service (NRS) has announced that it will extend its electronic invoicing system to medium and emerging taxpayers beginning April 2026, marking the next phase in the agency’s digital tax reform drive. The initiative, known as the Electronic Fiscal System (EFS) or Merchant Buyer Solution (MBS), is designed to strengthen tax administration, boost transparency, and encourage voluntary compliance among businesses.
The e-invoicing platform first went live for large taxpayers on August 1, 2025, after months of consultations and sector-wide engagements. Its implementation was later extended to November 2025 to allow businesses adjust operationally. Since then, the NRS says it has made significant progress, with most large taxpayers successfully onboarded and actively transmitting invoice data to the MBS platform.
In a public notice issued Monday, NRS Chairman Zacch Adedeji said the expansion aligns with Section 23 of the Nigeria Tax Administration Act (NTAA), which authorises the agency to deploy technology for tax collection, and Section 158 of the Nigeria Tax Act (NTA), which mandates taxpayers to implement the fiscalisation system introduced by the Service. He noted that the rollout will follow structured stages, including stakeholder engagement, pilot testing, go-live, post-implementation review, and compliance enforcement.
According to the timeline, medium taxpayers — defined as businesses with annual turnover between N1 billion and N5 billion — will undergo stakeholder engagement from January to March 2026, followed by a pilot phase from April to June 2026. Full go-live is scheduled for July 1, 2026, with compliance enforcement beginning January 2027. For emerging taxpayers with annual turnover below N1 billion, engagement will commence in early 2027, with full enforcement expected by the first quarter of 2028.
Adedeji encouraged taxpayers to confirm their category and actively participate in onboarding activities to ensure a smooth transition. While the timelines remain subject to operational readiness and stakeholder feedback, the NRS reaffirmed its commitment to collaborating with businesses and professional bodies to make the shift to e-invoicing seamless. For many companies, the reform signals not just tighter compliance measures, but a broader shift toward a more digitised and transparent tax system in Nigeria.
source: The cable