The Federal Government has officially launched a new Electronic Fiscal System (EFS) designed to modernise tax administration in Nigeria, curb evasion, and make revenue collection more transparent.

The platform, which went live nationwide on August 1, 2025, features an e-invoicing solution known as the Merchant-Buyer Model. It allows the Federal Inland Revenue Service (FIRS) to track commercial transactions in real time, ensuring invoices are authentic, accurate, and complete.

For now, the system targets large companies with annual turnovers of ₦5 billion and above. According to FIRS, at least 1,000 firms, including MTN Nigeria, Huawei Nigeria, and IHS Nigeria, have already been onboarded, with more expected before the new deadline of November 1, 2025. The original August deadline was extended by three months to give companies more time for integration.

The FIRS is working with system integrators and access point providers to help businesses connect seamlessly. After this first phase, medium-sized and smaller companies will also join, bringing Nigeria closer to global best practices in revenue management.

President Bola Tinubu’s administration has made tax reform a key priority. New laws set to take effect in January 2026, including the Nigeria Tax Act and the Tax Administration Act, will tighten rules, introduce digital registration, enforce beneficial ownership disclosure, and crack down on tax avoidance schemes.

FIRS says it will continue holding workshops, webinars, and stakeholder meetings to ensure a smooth transition, urging companies to embrace the system early to avoid last-minute compliance issues.

In simple terms, this move means less tax evasion, more transparency, and a fairer business environment for everyone.