FIRS Launches E-Invoicing Project to Combat Tax Evasion, Revenue Leakages

Mary Nnah

In a bid to crack the whip on tax evasion and revenue leakages, the Federal Inland Revenue Service (FIRS) has launched its National E-Invoicing Project, a digitalised solution designed to promote transparency, accountability, and efficiency in business transactions.
The launch was marked by a 2-day stakeholder engagement held at the Radisson Blu Hotel in Ikeja, Lagos, which brought together industry leaders and stakeholders from the manufacturing sector to discuss the initiative and provide input on its implementation.

This latest engagement marks the fifth sector-specific engagement session, following previous sessions with tax consultants, large taxpayers, financial services, and the Oil & Gas sector.
The FIRS has been engaging with various stakeholders to ensure that the e-invoicing project is tailored to meet the needs of different industries and sectors.

Project Manager for the e-invoicing initiative, Mr. Mohammed Bawa, emphasized the importance of the manufacturing sector to the economy and the FIRS’ commitment to valuing their input.
He added, “We are excited to work with you to ensure that this project is a success and benefits both taxpayers and the government.”

Director of Project Delivery, Mr. Kunle Olley, revealed that the e-invoicing initiative is designed to build trust between taxpayers and the FIRS, promote transparency, and automate taxation in the country.

“We want to build-up trust between you and us, between our taxpayer and FIRS, and then we want to have transparency into whatever we are doing,” Olley said.

“We are not trying to penalise taxpayers, but to collaborate with them to make sure that we automate taxation in the country.”
He further stated, “The e-invoicing project is a game-changer for Nigeria’s tax administration. It will help to reduce tax evasion and revenue leakages, and promote transparency and accountability in business transactions.”

The FIRS has developed a digitalized solution, called the Merchant Buyer Solution (MBS), which will capture invoices and manage tax compliance automatically.

Lead Consultant on the Invoicing Project, Mr. Sadiq Arogundade, presented on the e-invoicing system and its use cases, highlighting the importance of invoices in business transactions. “Invoices represent trust, commitment, and value,” he said. “We are not just talking about taxes or taxation, but about technology and global competitiveness of your business.”
He added, “The MBS will enable businesses to create standard and payable invoices that can be used for both in-country and cross-border transactions, using the Universal Business Language (UBL) format.
This will help to fix challenges with payments, delayed payments, errors, and distress with compliance.

“We have built a product that will help to automate tax compliance and improve efficiency,” Arogundade added. “The e-invoicing system will also provide real-time data on tax compliance, which will enable the FIRS to make informed decisions and improve tax administration.”

The stakeholder engagement provided a platform for stakeholders to ask questions and provide input on the implementation of the e-invoicing project. The FIRS is expected to engage with other sectors, including SMEs and downstream industries, in the coming weeks. With this bold step, the FIRS is revolutionising tax administration in Nigeria and setting a new standard for transparency and accountability in business transactions.

The National E-Invoicing Project is a key initiative by the FIRS to improve tax administration and revenue collection in Nigeria. The project is designed to promote transparency, accountability, and efficiency in business transactions, and to reduce the risk of tax evasion and revenue leakages. With the engagement with the manufacturing sector now concluded, the FIRS is one step closer to achieving its goal of implementing a seamless and efficient e-invoicing system that will benefit both taxpayers and the government.