The Federal Inland Revenue Service (FIRS) is pushing for widespread adoption of the Merchant Buyer Solution (MBS) electronic invoicing system. By automating business transactions across sectors, the system aims to improve tax compliance, enhance transparency, and curb revenue losses.
The organization stated this during a stakeholder engagement forum, which focused on the phased rollout of the system, particularly targeting tax consultants handling large taxpayers.
According to the Revenue Statistics in Africa 2023, Nigeria’s tax-to-GDP ratio improved to 10.6 percent, up from 6.3 percent the previous year. However, the Federal Government has set an ambitious target of 18 percent to enhance revenue generation.
As part of efforts to achieve this goal, the FIRS launched the National E-Invoicing Solution in 2024, describing it as a transformative initiative designed to provide real-time visibility into business transactions and financial data, ultimately strengthening transparency and compliance.
Speaking at the forum, the Director of the Competent Authority Department, FIRS, Sunday Okeowo, who was represented by the Director of Field Operations Management, Matthew Osanekwu,highlighted the role of tax consultants in the adoption of the e-invoicing system. He said, “Partner with FIRS on the journey to digital transformation, embrace adoption and understanding of the e-invoicing concept, support clients/taxpayers in technological integration and implementation, provide continuous training and capacity building for clients, and advocate for compliance advisory.”
Osanekwu further emphasized the need for adaptation, stating, “Tax consultants must realise that change has come. FIRS is on a journey, and that journey is to become one of the most trusted and efficient tax systems in the world.”
The Chief of Staff to the Executive Secretary of FIRS and Head of the Strategic Management Office, Tayo Koleosho, emphasized the need for tax consultants’ support in the rollout of the e-invoicing system. He urged them to guide their clients through the process, highlighting its benefits for tax administration and revenue generation.
Koleosho also provided an update on the implementation timeline, stating that the system is expected to go live by July. He noted that the initiative would enhance ease of doing business, ease tax administration, and improve compliance, making it a beneficial move for all stakeholders.
Project Manager for the e-invoicing system, Mohammed Bawa, highlighted that the adoption of the solution would enhance the ease of doing business in Nigeria. He noted the positive reception from tax consultants, emphasizing a shared understanding that digital invoicing is the future “There is a consensus that this is the way to go, and we hope that we will be able to push compliance to a high level.” he stated.
