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ARTICLE · 16 JUNE 2025

Electronic Fiscal Systems In Nigeria - A Game Changer

KPMG in Nigeria
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In November 2024, the Federal Inland Revenue Service (FIRS) announced the planned adoption of the Merchant Buyer Solution (MBS) also called the e-invoicing initiative for enhanced tax administration and tax collection.

NigeriaTax
Adewale Ajayi
Adewale Ajayi

Introduction

In November 2024, the Federal Inland Revenue Service (FIRS) announced the planned adoption of the Merchant Buyer Solution (MBS) also called the e-invoicing initiative for enhanced tax administration and tax collection. This is a national initiative involving various government agencies, such as the Nigeria Customs Service (NCS), Central Bank of Nigeria (CBN), National Information Technology Development Agency (NITDA), etc., but is primarily driven by the FIRS. Electronic invoicing is simply a process of sending and receiving invoices electronically rather than through paper-based methods.

Nigeria will be adopting the clearance and reporting model of e-invoicing in line with the Pan-European Public Procurement Online (PEPPOL) framework. This model of e-invoicing is used for Business-to-Business (B2B) and Business-to-Government (B2G) transactions. The clearance model facilitates seamless creation, validation, and exchange of electronic invoices between

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