Nigeria: E-invoicing expected to begin in July 2025
Pending presidential approval of tax reform bills
The Federal Inland Revenue Service (FIRS) in November 2024 announced the adoption of the Merchant Buyer Solution (MBS), an electronic invoicing (e-invoicing) initiative aimed at improving tax administration and collection in Nigeria. This initiative will transition invoice processes from paper-based to electronic.
Nigeria will implement the clearance and reporting model of e-invoicing following the Pan-European Public Procurement Online (PEPPOL) framework for business-to-business (B2B) and business-to-government (B2G) transactions. Each invoice must include a reference number, QR code, and digital signature for validity.
Pilot testing with large taxpayers is underway, with full deployment expected in July 2025, pending presidential approval of tax reform bills. The rollout will begin with B2B and B2G transactions, later expanding to business-to-consumer (B2C) transactions.
KPMG observation
The initiative is part of Nigeria's broader effort to widen the tax net and enhance government revenues, joining other countries like India and Mexico in implementing e-invoicing. It promises benefits such as increased transparency, reduced compliance costs, and improved tax compliance. However, challenges such as infrastructure quality, compliance costs, data privacy, and accessibility for small businesses need to be addressed for successful implementation.
Read a June 2025 report prepared by the KPMG member firm in Nigeria