FIRS extends E-Invoicing deadline as over 1,000 big Firms join Digital Tax Net

By Kazeem Ugbodaga

The Federal Inland Revenue Service (FIRS) has warned large corporations against delaying compliance with its new e-invoicing system, after granting a three-month extension to the onboarding deadline.

Speaking at a post go-live workshop in Lagos, officials revealed that more than 1,000 major companies — including MTN Nigeria, Huawei, and IHS — have already integrated into the platform, which went live on 1 August.

This figure represents about 20 percent of the over 4,000 large taxpayers targeted by the scheme.

The extension, which shifts full enforcement from 1 August to 1 November 2025, is intended to allow businesses resolve integration bottlenecks. But FIRS officials stressed that no further grace will be given.

“This is not an opportunity to delay; it is a chance for taxpayers to test transmissions and address readiness issues before enforcement,” said Mr Emmanuel Eze, Director of Change Management at FIRS, who represented the Chief of Staff to the Executive Chairman.

Project Manager, Mr Mohammed Bawa, explained that e-invoicing is critical to closing Nigeria’s tax gaps, as many transactions still escape the tax net.

“From the moment a business transaction begins, government must know it is happening. That’s how we reduce under-declaration, tax avoidance, and evasion,” he said.

He added that under the new regime, businesses outside the e-invoicing platform would be unable to transact formally.

FIRS Acting Director of Tax Automation, Mr Mike Adoga, assured that all data captured would remain confidential under the Nigeria Data Protection Act, saying the system was designed to reduce audit disputes by ensuring every transaction is logged and taxes assessed in real time.

Officials underscored that Nigeria’s tax-to-GDP ratio remains stuck at 10 percent, among the lowest globally, and argued that full adoption of e-invoicing is vital to boost revenue, widen the tax base, and formalize informal businesses.