The Federal Inland Revenue Service has announced plans to launch an e-Invoice system as part of efforts to modernize Nigeria’s tax system.
This digital solution will help manage invoices and ensure real-time validation of transactions for businesses and consumers.
The Executive Chairman of FIRS, Dr. Zacchaeus Adedeji, revealed this during a stakeholder engagement event in Lagos organized by the Lagos Chamber of Commerce and Industry.
He was represented by Mrs. Oti Olaniyi, the Acting Director of the Medium Taxpayers Department at FIRS.
Adedeji explained that the e-Invoice system is part of FIRS’ digital transformation strategy aimed at improving tax administration. “The e-Invoice will facilitate real-time transaction validation and storage, benefiting business-to-business, business-to-consumer, and business-to-government transactions,” he said.
He added that Nigeria’s evolving tax system presents both challenges and opportunities. Recent reforms, including organizational restructuring within FIRS, have helped shape the country’s taxation landscape. “By embracing reforms, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development,” Adedeji noted.
Adedeji emphasized the importance of cooperation in moving the country forward. “Our collective efforts will pave the way for a more prosperous and resilient Nigeria. As we move forward, we encourage you to support these initiatives with constructive feedback and collaboration,” he said.
He also stressed the need to explore tax incentives that would boost local industries and promote economic growth. “We must ensure transparency and effectiveness in implementing these incentives, ensuring they align with national development goals,” he added.
One of the challenges identified by Adedeji is the informal sector, which includes many small and micro businesses operating outside the formal tax system. To address this, the government plans to introduce simplified tax regimes and offer incentives to encourage registration.
In his remarks, LCCI President, Mr. Gabriel Idahosa, urged FIRS to work closely with the private sector to ensure that tax policies promote business growth and competitiveness. He highlighted recent tax reforms aimed at increasing revenue and simplifying tax compliance.
“Under its new leadership, FIRS has set ambitious goals to increase tax collection by 57%, targeting N19.4 trillion in revenue for 2024,” Idahosa said. He noted that the current tax-to-Gross Domestic Product (GDP) ratio is 10.86%, but the government aims to raise it to 18% within three years through new tax reforms.
Idahosa also stressed the importance of collaboration between the public and private sectors. “There is a growing need for collaboration to ensure tax policies support business innovation and competitiveness,” he said. He suggested tax breaks for wage increases and the removal of barriers to foreign currency transactions as ways to improve the business environment.
As Nigeria’s fiscal policy evolves, Idahosa emphasized that expanding the tax net and increasing compliance are critical for securing the country’s economic future. “For these reforms to succeed, the government must foster trust through transparency and fairness, while businesses and citizens must embrace a culture of tax compliance,” he concluded.
