FIRS Moves to Boost Nigeria’s Tax-to-GDP With e-Invoicing, Reels Out Benefits
The Federal Inland Revenue Service (FIRS) has disclosed that its electronic invoicing system will boost Nigeria’s tax-to-GDP ratio by enhancing tax compliance, transparency and halting revenue losses.
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The nation’s premier tax administrator disclosed this at its stakeholder engagement forum with tax consultants in Lagos on Monday, March 10, 2025.
E-invoince: FIRS engages tax consultant.
The forum aims to boost awareness, tackle issues and gather critical insights to ensure a smooth transition to the system’s pilot phase.
Source: UGC
The chief of staff to the FIRS Chairman, Tayo Koleosho stressed the the essential role tax consultants play in shaping Nigerian tax governance,
According to him, the service’s commitment to modernise tax administration has driven transformation from tax administration through various stages from 1.0 to 2.0, a critical digital integration, which will enable it to pivot to 3.0, the global standard in today’s world.
Emphasising the need for e-invoicing, Koleosho said the FIRS will begin the pilot phase in July this year targeting large taxpayers to enhance tax administration and compliance in Nigeria.
Nigeria’s tax compliance is creditworthy
He disclosed that the tax compliance rate among large taxpayers is above 90% but 50% on average.
The FIRS boss’ aide said e-invoicing globally has helped to raise compliance due to a lot of inter-data exchange between tax authorities and businesses.
He said other countries have implemented this basic platform to achieve a more integrated tax system between taxpayers and administrators.
The director of Competent Authority at FIRS, Okeowo Sunday, said over 21 countries in Africa have adopted e-invoicing in different stages, saying that Nigeria is behind most of them.
Nigeria lags in e-invoicing globally
Sunday revealed that Nigeria ranks 171 out of 190 in the world in ease of tax payment and 131 in ease of doing business, signalling the country’s poor ranking on the global stage.
“For Nigeria to attain a $1 trillion economy, we cannot continue to do the same things the same way. There is a need for us to do things differently. So, the e-invoicing is a step towards that direction,” he said.
The FIRS e-Invoicing System is an innovative solution to streamline invoicing while ensuring compliance with global standards and best practices.
Source: Twitter
Built on a robust framework, it sets a new benchmark for efficiency, security, and reliability in managing fiscal and transactional activities in Nigeria.
The event is the second in FIRS's quest to drive stakeholders’ engagement for broader adoption, implementation and eventual rollout.
15% VAT, 19 other critical provisions of the Tax Reform bill
Legit.ng earlier reported that the Nigeria Tax bill was among the three bills sent to the National Assembly by President Bola Tinubu on October 3, 2024.
The bills have generated enough controversies and protests among Nigerians, with some governors, especially from the North, and traditional leaders kicking against them.
However, the bills contain some salient provisions that have divided Nigerians along regional lines.
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Source: Legit.ng
