From John Silas, Lagos
The Federal Inland Revenue Service (FIRS) has announced its plan to introduce an electronic invoicing (e-invoice) system, a digital solution aimed at facilitating real-time transaction validation and storage. This initiative is set to enhance Business-to-Business (B2B), Business-to-Consumer (B2C), and Business-to-Government (B2G) transactions, improving transparency and efficiency in Nigeria’s tax administration.
Speaking at the LCCI-FIRS Private Sector Stakeholders’ engagement, themed ‘Emerging Tax Matters’, organised by the Lagos Chambers of Commerce and Industry, FIRS Executive Chairman Dr. Zacch Adedeji, represented by Acting Director of the Medium Taxpayers Department, Mrs. Oti Olaniyi, noted that the digital solution aligns with the Tax Administration and Enforcement Act of 2007.
Dr. Adedeji highlighted the importance of reform in navigating Nigeria’s emerging tax challenges, stating, “By embracing reform, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development.” He emphasized that the e-invoice system is part of FIRS’s broader efforts to innovate and improve tax compliance across the board.
Adedeji also stressed the crucial role taxpayers play in financing national infrastructure projects, noting that revenues collected through various taxes, such as Corporate Income Tax (CIT), Value Added Tax (VAT), Petroleum Profit Tax (PPT), Capital Gains Tax (CGT), and Education Tax (EDT), are deposited into the Federation Account and distributed to the three tiers of government according to a set formula.
In a bid to improve service delivery, the FIRS has undergone significant restructuring, which includes the creation of three operational tax groups—Small (Emerging Tax), Medium, and Large Tax Groups—to better serve taxpayers based on their income thresholds. Additionally, the agency has established a “One-Stop-Shop” model that integrates tax office and tax audit functions to prevent the harassment of taxpayers by multiple departments.
Adedeji noted that the FIRS is committed to a customer-centric approach, aimed at enhancing voluntary compliance and boosting revenue generation. “Ensuring tax compliance benefits both businesses and the government. When businesses meet their tax obligations, it translates into increased revenue for the government, which is essential for funding public services and infrastructure development,” he said.
The FIRS has also leveraged technology to strengthen tax administration through the development of platforms like TaxPro Max, which allows taxpayers to file returns and access various tax services online. Other e-services, such as e-filing, e-reporting, e-registration, and e-TCC, demonstrate the agency’s commitment to facilitating efficient tax management. To ensure fairness, Deloitte & Touche has been engaged as an independent quality assurer to oversee the grading process and guarantee transparency in tax assessments.
Looking forward, Dr. Adedeji urged stakeholders to embrace the ongoing reforms and contribute feedback to improve Nigeria’s tax system. “Our tax system, a foundational element of economic policy, is undergoing significant reforms. These changes are driven by the need for increased revenue, better compliance, and more equitable economic practices,” he noted.
He further explained that the recent changes in the tax landscape, such as the Finance Act’s provisions on VAT for digital services and the introduction of simplified tax regimes, are designed to diversify Nigeria’s revenue base and adapt to the global digital economy. Additionally, new tax incentives have been introduced, particularly in the gas sector, to encourage foreign investment and local industrial growth.
Dr. Adedeji concluded by urging continued collaboration between the FIRS and stakeholders, stating, “By working together, we can build a stronger, more resilient economy that benefits all Nigerians.”
