Interchange of Data: How banks are driving Nigeria’s e-invoicing system for large taxpayers — FIRS

The integration of electronic invoicing (e-invoicing) into Nigeria’s tax administration is drawing banks into a central role, as they now facilitate the seamless exchange of data between the Federal Inland Revenue Service (FIRS) and corporate entities.

Through their infrastructure, banks are enabling real-time transmission of invoice data, which allows the FIRS to track transactions more efficiently and strengthen compliance. This initiative, also known as the Merchant Buyer Solution (MBS), is part of government efforts to digitize tax administration, curb leakages, and promote transparency in financial reporting.

Speaking at the end of a two-day Post Go-Live E-Invoice Workshop in Abuja, Mr. Tayo Koleosho, Chief of Staff to the FIRS Executive Chairman, explained that banks have become deeply embedded in the system.

“We have seen a lot of enthusiasm from their part, because what electronic invoicing does is that it helps businesses, banks, and the entire ecosystem to work better together through a seamless interchange of data,” he said.

“As you give an invoice to your buyer and payment goes through the bank, the data exchange is integrated across the board. It’s good business for the banks, and it’s good business for the large taxpayers.”

Koleosho revealed that several banks have already completed integration with the FIRS platform, while core banking service providers are aligning their systems to ensure data synchronization across invoices, buyers, and transactions.

He added that President Bola Tinubu’s recently signed tax legislation, which emphasizes digitization, has made it easier to integrate businesses into the framework. More than 1,000 companies—about 20 percent of Nigeria’s large taxpayer population—have already gone live on the platform, including major corporates such as MTN, IHS, and some banks.

According to Koleosho, the FIRS has been holding extensive consultations with industry stakeholders to build capacity and awareness. He noted that a critical mass of taxpayers is expected to integrate by November 1, after which the agency will review progress and determine next steps.

The FIRS has also developed online support systems and training materials to ease adoption, describing the initiative as a “change management process” that will ultimately benefit both companies and the country through better data for planning, reporting, and investment decisions.

Backing up Koleosho’s comments, Mr. Mohammed Bawa, Project Manager for FIRS e-invoicing implementation, clarified that banks, being part of the large taxpayer category, are mandated to implement the system.

 “As I speak, several banks have commenced integration and are cooperating fully. They will be at the forefront of driving this initiative,” Bawa said.

“The system produces what we call the Invoice Reference Number, which will serve as a unique identifier for every transaction. In the long term, government will decide on making its use compulsory for all transactions.”

Addressing concerns that e-invoicing might displace tax agents, Bawa emphasized that the technology will instead enhance efficiency, citing the success of the earlier TaxPro-Max platform.

 “This is not about job loss. In fact, consultants and tax agents are being empowered because the process is more efficient and transparent,” he explained. “Everyone benefits from the bigger picture—taxpayers, banks, service providers, and government.”

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He stressed that the e-invoicing project is an all-inclusive framework designed to ensure compliance and transparency, with no exemptions for taxpayers.

As Nigeria pushes ahead with digital reforms in tax administration, banks have emerged as a key link in driving adoption, ensuring that transactions are properly captured, and helping government boost non-oil revenue through technology.