Nigeria is implementing a nationwide E-Invoicing framework as part of the Federal Inland Revenue Service (FIRS) digital tax transformation program. The system, known as the Merchant-Buyer Solution (FIRSMBS), requires VAT-registered businesses to issue structured E-invoices that are validated in real time by FIRS before delivery to the buyer. Initially targeting large taxpayers with annual turnover of ₦5 billion (3,2 million dollars) or more, the mandate will be rolled out in phases to medium and small enterprises. The initiative aims to reduce tax evasion, improve compliance, and provide the government with real-time visibility of economic transactions while streamlining invoicing processes for businesses.
Timeline
- Sep 2024 – FIRS announces e-invoicing plan under its tax digitalization strategy.
- Mar 2025 – Stakeholder consultations with large taxpayers.
- Jul 2025 – Pilot begins with large taxpayers (≥ ₦5 billion turnover).
- Aug 1, 2025 – Mandate starts for large taxpayers.
- Aug 11, 2025 – Onboarding deadline extended to Nov 1, 2025.
- From 2026 – Phased expansion to medium and small businesses.
Scope
The Nigerian e-Invoicing mandate applies to all VAT-registered suppliers, both domestic and foreign, covering business-to-business (B2B), business-to-government (B2G), and high-value business-to-consumer (B2C) transactions.
In its initial phase, the requirement targets large taxpayers with an annual turnover of ₦5 billion or more, with smaller entities scheduled to follow in subsequent rollout phases. The scope also extends to import and export invoices in line with directives from the Central Bank of Nigeria, ensuring that cross-border trade is fully integrated into the e-invoicing framework.
Authority & Legal Background
- FIRS Establishment Act 2007 – Sections 25 & 26 empower technology-based tax automation.
- Nigeria Tax Administration Bill (NTAB) – Provides legal framework for penalties and enforcement.
- National Information Technology Development Act 2007 – NITDA sets technical standards and accredits Access Point Providers (APPs).
Submission Details
- Structured according to Peppol BIS Billing 3.0 UBL standards.
- Accepted formats: XML or JSON.
- B2B/B2G: Pre-clearance via FIRSMBS; IRN and CSID issued before invoice delivery.
- B2C: Invoice reported within 24 hours of issuance.
- Access via FIRSMBS portal or REST API with digital certificate authentication.
- APPs act as intermediaries for transmission and must be NITDA-accredited.
Penalties
Daily ₦50,000 fine for late B2C reporting; loss of input VAT credit for invalid B2B/B2G invoices; APP accreditation withdrawal for non-compliance.
How Can SNI Help You?
SNI’s solution extracts taxpayers’ data directly from their accounting or ERP systems and converts it into the required electronic format (such as XML or JSON) in line with FIRS guidelines. The solution supports data transmission through direct integration with the FIRS TaxPro-Max platform or via accredited service providers.
SNI’s Nigerian e-invoicing solution fully supports both outbound and inbound invoice processes. Outbound invoices (issued by suppliers) are submitted directly to FIRS using secure APIs or web services, ensuring regulatory compliance and real-time validation. Inbound invoices (received from vendors) are automatically fetched at regular intervals through integration with FIRS’s systems, providing businesses with up-to-date visibility on all incoming documents.
All inbound invoices are accessible through the SNI Inbound Cockpit – a user-friendly interface that allows efficient tracking, review, and management. Invoices are available in both machine-readable (XML or JSON) and human-readable (PDF/HTML) formats to support compliance, internal controls, and audit readiness.
To streamline financial operations, SNI also offers automated invoice reconciliation. This feature intelligently matches incoming invoices with purchase orders, goods receipts, or internal financial records – minimizing manual work, reducing errors, and accelerating invoice validation and payment processes.
SNI’s solution integrates with existing systems without requiring version upgrades. It is fully compatible with SAP ECC 4.7 and above, SAP S/4HANA, SAP R/3, and SAP BTP. Moreover, SNI also delivers ERP-independent solutions, ensuring seamless integration with any ERP software used by Nigerian businesses.
By leveraging SNI’s localized e-invoicing platform, Nigerian companies can ensure compliance with FIRS regulations while enhancing operational efficiency and financial control.