Nigeria rolls out e-invoicing system as tax reporting goes digital

Nigeria is changing how businesses report sales to the tax authority with a new electronic invoicing system that allows the Nigeria Revenue Service (NRS) to receive qualifying invoice data as transactions happen. The new system replaces a process where businesses often submitted tax information months after making sales. Businesses will now send invoice data through approved digital platforms, allowing the NRS to compare transactions with future tax returns. The NRS has already started the rollout. It is monitoring large taxpayers, medium-sized businesses begin mandatory onboarding this year, and smaller businesses will join in 2027.

Tracking transactions as they happen

Every electronic invoice carries a unique Invoice Reference Number that links each transaction to the NRS platform. Mohammed Bawa, who leads the NRS e-invoicing programme, said the system aims to improve visibility into commercial activity and encourage businesses to report revenue more accurately. Rather than waiting for businesses to file tax returns, the NRS can compare invoice data with the figures companies eventually declare.

Businesses keep their existing systems

The NRS built the platform to work with accounting and enterprise software that businesses already use. Companies using SAP, Oracle, Microsoft Dynamics, Sage, Odoo and other accounting systems can connect through approved Access Point Providers instead of replacing their existing software. Digitax, one of the accredited providers, says it already supports integrations with more than 50 ERP systems. The National Information Technology Development Agency (NITDA) accredits the companies that connect businesses to the platform. Providers must meet cybersecurity, data protection, invoice standard and system reliability requirements before NITDA certifies them. They must also store invoice data inside Nigeria to comply with the country’s data localisation policy.

Learning from other countries

Tanzania, Rwanda, Uganda and Ghana already use electronic invoicing, while South Africa is preparing its own phased rollout under its VAT Modernisation Project. Nigerian officials also studied countries where implementation proved difficult. Poland delayed its mandatory launch before it took effect, while Kenya replaced its original hardware-based system after businesses pushed back against it. Those experiences shaped Nigeria’s decision to introduce the system in phases. Officials also spent months consulting businesses in banking, manufacturing, telecommunications and oil and gas before launching the platform. The platform also gives government access to data on consumption, trade and supply chains. Officials say the information can support economic planning, strengthen VAT administration and simplify cross-border trade under the African Continental Free Trade Area (AfCFTA). The next step is getting businesses connected. As companies begin sending invoice data through the platform, the NRS will compare transaction records with future tax returns. The rollout marks a significant change in how Nigeria collects tax information, but its long-term success will depend on how quickly businesses adopt the new system.