Nigeria begins enforcing e-invoicing compliance for large taxpayers

The Nigeria Revenue Service (NRS) has moved from rolling out its electronic fiscal system to actively monitoring compliance among large taxpayers. While companies have until July 31, 2026 to finish onboarding and system integration, the regulatory focus has firmly shifted to practical implementation.

Full compliance requires more than just issuing digital receipts. Large taxpayers must onboard onto the NRS Merchant Buyer Solution, integrate accounting systems through approved providers, and actively transmit invoices. Furthermore, companies must ensure all supplier invoices carry a valid Invoice Reference Number before enforcement actions commence.

Businesses cannot connect their enterprise resource planning software directly to the tax authority. According to Olumide Akinsola, country director of DigiTax Nigeria, integration must run through licensed System Integrators and Access Point Providers via RESTful APIs. “There is no one-size-fits-all approach,” Akinsola said, noting that implementation costs fluctuate significantly based on an organisation's size, invoice volumes, and existing IT infrastructure.

For early adopters, the core technology is proving manageable. Dapo Adeyemi, Applications Manager, ERP at Evacare Health, stated that the healthcare group now automatically transmits invoices daily. “The integration has been seamless so far,” Adeyemi said, though he noted that the primary operational bottleneck is data hygiene rather than software.

As the NRS transitions from the old Tax Identification Number to a new Tax ID, mismatched customer details trigger immediate invoice rejections. This forces finance teams to chase clients for correct information within tight correction windows. Delayed responses from customers can therefore create significant operational bottlenecks even after successful system integration.

While the system is actively capturing data, businesses cannot yet use it to automate input VAT claims. “We’ve not automated that process of claiming input VAT yet,” said Mohammed Bawa, Project Manager, NRS e-Invoice Solution, meaning companies must continue using existing VAT return processes for now.

The long-term objective is to connect invoice validation, tax filing, payment and reconciliation into a single digital pipeline. Akinsola noted this will eventually allow businesses to issue invoices, reconcile transactions, and receive confirmations through integrated platforms. For corporate finance teams, preparing for this regime is less about purchasing new software and more about ensuring internal data is accurate enough to survive automated tax audits.