Drive adoption of e-invoicing, FIRS urges tax consultants

The Federal Inland Revenue Service (FIRS) has called on tax consultants nationwide to champion the adoption of e-invoicing, ensuring seamless integration for their clients and accelerating Nigeria’s transition to a digital tax system.

FIRS emphasised that tax consultants, as key stakeholders, play a crucial role in driving the country’s tax digitalization efforts. By embracing e-invoicing, Nigeria can align with global trends and enhance its tax administration efficiency, avoiding the risk of falling further behind in digital tax compliance.

At the second stakeholders’ forum on e-invoicing, held in Lagos, FIRS tax experts highlighted the transformative impact of e-invoicing on tax compliance, transparency, and efficiency. Speaking at the event, FIRS Director of Technology, Kunle Olley, stated, “E-invoicing is designed to improve tax compliance levels and foster transparency between buyers and sellers. With tax consultants on board, we can achieve these objectives seamlessly.”

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Matthew Osanekwu, Director of Field Operations Management, reiterated the urgency of adopting e-invoicing, noting the increasing global shift toward digital business transactions. Representing the Coordinator Director of the Compliance Support Group, he said, “The traditional manual approach to tax administration is outdated. As businesses evolve with technology—incorporating blockchain, AI, and other digital innovations—Nigeria’s tax system must also adapt.”

Osanekwu further pointed out that over 21 African countries, including Ghana, Benin, Rwanda, Uganda, Kenya, Egypt, Tunisia, Morocco, and South Africa, have already implemented e-invoicing in various capacities. He stressed that Nigeria lags behind in global tax compliance and ease of doing business, ranking 171st out of 190 countries for tax payment efficiency and 131st in overall business operations.

With Nigeria’s tax-to-GDP ratio at approximately 10.3%, compared to the African average of 15-16%, Osanekwu emphasized that increasing this ratio to 18% is a key government priority. He added, “If Nigeria aims to achieve a $1 trillion economy, we must modernize our tax system. E-invoicing will curb tax evasion, expand the tax net, and accelerate digital transactions.”

Tax consultants were urged to support their clients in transitioning from manual to digital tax processes. Osanekwu stated, “Change is here. FIRS is committed to becoming one of the fastest and most efficient tax administrators globally. Tax consultants must embrace this transformation and guide their clients in adapting to the digital approach.”

In his opening remarks, Tayo Koleosho, Chief of Staff to the Executive Chairman of FIRS and Head of the Strategic Management Office, reaffirmed FIRS’ dedication to tax modernization. He highlighted the evolution from manual tax administration (Tax Administration 1.0) to digital integration (Tax Administration 2.0) and now towards global business efficiency (Tax Administration 3.0).

Koleosho called on all stakeholders to actively participate in the ongoing sensitization, trial phase, and full rollout of e-invoicing in Nigeria. He commended tax consultants for their pivotal role in shaping the country’s tax administration and urged them to champion the adoption of this digital initiative for a more transparent and efficient tax system.