FG Launches Electronic Fiscal Platform to Combat Tax Evasion

In a significant move to overhaul Nigeria’s tax system and curb widespread evasion, the Federal Government has officially launched a national Electronic Fiscal System (EFS), marking a new era of digital tax administration across the country.

The new platform, announced by the Federal Inland Revenue Service (FIRS), went live on August 1, 2025, following a successful pilot phase that began in late 2024. The system is expected to revolutionise how taxes are collected by providing real-time transparency, streamlining compliance, and reducing the scope for manipulation and evasion.

At the heart of the EFS is an advanced electronic invoicing system, known as the Merchant-Buyer Model. This tool enables FIRS to digitally track and validate commercial transactions between businesses, ensuring that all taxable activities are accurately captured and reported.

Initially, the platform is targeting large companies—those with an annual turnover of ₦5 billion and above—who are now required to integrate with the new system. According to the FIRS, these corporations represent a significant chunk of Nigeria’s formal economic activity and are crucial to building a reliable tax base.

In a statement released on Sunday by Dare Adekanmbi, the Special Adviser on Media to the FIRS Chairman, the agency confirmed that at least 1,000 companies have already adopted the system. This figure represents about 20 percent of the over 5,000 eligible firms nationwide.

While the original onboarding deadline was set for August 1, the FIRS has extended it by three months—until November 1, 2025—to give compliant companies additional time to integrate due to operational or technical hurdles encountered during the pilot phase.

One of the early adopters, MTN Nigeria, has already gone live, successfully transmitting live e-invoices through the FIRS system—effectively becoming the first taxpayer to fully operate under the new e-invoicing regime. Other major corporations, including Huawei Nigeria and IHS Nigeria, have completed their test transmissions and are expected to follow suit imminently.

To assist in the integration process, the FIRS has partnered with the National Information Technology Development Agency (NITDA) to create a support ecosystem involving designated service providers. These providers will function as both technical integrators and access point facilitators, helping businesses connect to the government’s fiscal data hub.

The e-invoicing initiative forms part of a broader phased rollout. After large companies, the FIRS will gradually onboard medium-sized and emerging enterprises, ensuring that the transition is manageable and that all stakeholders are adequately supported throughout the process.

This new system not only brings Nigeria in line with global best practices but also supports the government’s wider goal of fiscal reform, especially under the framework of the Nigeria Revenue Services Reform Act. It is expected to close significant revenue loopholes by reducing underreporting, invoice manipulation, and the outright concealment of taxable transactions.

Importantly, the FIRS has vowed to keep engagement channels open in the coming months, promising webinars, town halls, and training sessions to ensure that companies understand their obligations and how to comply without disruption to their business operations.

The launch of the EFS also aligns with President Bola Tinubu’s administration’s fiscal policy agenda, which has made tax reform a central pillar of national economic strategy. Earlier in his tenure, the President inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms, headed by respected tax expert Taiwo Oyedele, with a clear mandate to simplify tax administration, eliminate multiple taxation, and close coordination gaps between tax authorities.

The reforms are already reshaping Nigeria’s tax landscape. From January 2026, four major tax laws will come into effect, including the Nigeria Tax Act and the Tax Administration Act. These laws will mandate digital tax registration, introduce stricter reporting requirements, and compel the disclosure of beneficial ownership—a move designed to expose hidden income and assets often shielded behind complex company structures or shell entities.

The upcoming legislation also targets transactions designed primarily to avoid taxes, empowering regulators to disallow tax advantages gained through artificial arrangements. The combined effect of these changes is expected to significantly improve the integrity of Nigeria’s tax system while boosting revenue collection in a sustainable, equitable manner.

So far, the government’s approach has received cautious optimism from many private sector players. Large firms that have already onboarded say the EFS offers clearer audit trails and could reduce administrative friction in the long run. However, some smaller businesses are concerned about the potential compliance burden once the rollout expands beyond the top-tier companies.

In response, FIRS has stated that the system will be continuously refined based on feedback and that appropriate exemptions or reliefs may be considered for small and vulnerable businesses. For now, however, the focus remains on ensuring a successful launch among the biggest players, whose contribution to national tax revenue is both substantial and strategic.

For Nigeria, where non-oil revenue remains an underutilised source of fiscal stability, this digital transformation could not come at a more crucial time. With the naira under pressure, debt repayments rising, and state finances stretched thin, expanding the tax net and improving collection efficiency has become not just a reform goal, but a national imperative.

As the November 1 deadline approaches, all eyes will be on how well the remaining companies respond and whether the EFS can deliver on its promise: to make tax compliance not only more efficient but truly transparent and equitable for all.