The Federal Inland Revenue Service (FIRS) has said the upcoming national electronic invoicing system will make it easier for manufacturers in Nigeria to access credit from financial institutions. This announcement came during a recent stakeholder engagement event held in Lagos, where manufacturers gathered to understand how the new system will affect their operations ahead of its official launch on July 25.
The engagement was part of FIRS’ ongoing consultations with various sectors of the economy as it prepares to roll out Nigeria’s National E-Invoicing System. The system is being introduced to improve transparency in business transactions, support better tax compliance, and create more opportunities for businesses to secure funding based on verified invoices.
Mr. Sadiq Arogundade, the lead consultant on the invoicing project, gave a detailed presentation to manufacturers at the Lagos event. He stressed the important role that invoices play in the economy, especially when it comes to building a credit-based financial system. According to him, countries that are surviving today in the face of global economic challenges are those that operate as credit economies.
He explained, “Credit is now a very critical factor. Without credit, you can’t go far. What we are introducing through e-invoicing is a pathway to a credit-driven economy. You no longer need to always have money in hand before you do business. With a verified invoice carrying the credibility of FIRS, you can use that invoice to access financing in the money market through a process known as factoring.”
Arogundade added that beyond tax issues, the e-invoicing system would increase the global competitiveness of Nigerian businesses. He said the system is designed to help manufacturers and other businesses produce standard and reliable invoices using a universal business language format. These invoices can be used for local transactions as well as international trade, reducing the bottlenecks businesses usually face with payments, compliance, and errors.
“We are using technology to build trust in the Nigerian business environment. Invoices represent trust, commitment, and value. This new system will address the long-standing challenges of payment delays, manual errors, and inconsistent compliance. By having automated, real-time data, the FIRS can make better decisions and improve how taxes are administered in the country,” he said.
The new e-invoicing system, according to Arogundade, is also expected to improve efficiency by simplifying how businesses interact with the tax system. Businesses will be able to raise invoices that are automatically validated and ready for use in both domestic and cross-border transactions. The system is expected to provide a clear audit trail that tax authorities can rely on, while also reducing opportunities for tax evasion and fraud.
Also speaking at the event, the Acting Director of Tax Automation at FIRS, Mr. Mike Adoga, assured manufacturers that their business data would be protected under the new invoicing platform. He said the FIRS is committed to safeguarding sensitive business information and would strictly follow the provisions of the Nigeria Data Protection Act.
“I want you to rest assured that your data is safe. We are fully guided by the Nigeria Data Protection Act. All the data passed to us for tax purposes will be treated with the highest level of confidentiality,” Adoga stated.
The new e-invoicing system is part of a broader digital transformation drive by FIRS to modernise tax collection and improve business operations in the country. The agency believes the system will help manufacturers build stronger relationships with financial institutions by providing proof of trade and transaction history backed by official verification.
As the July 25 launch date approaches, the FIRS has promised to continue its engagements with different sectors of the economy to ensure a smooth transition. The agency is also expected to provide training and resources to help businesses understand how to use the platform effectively.
The introduction of e-invoicing is expected to be a game-changer for Nigeria’s manufacturing sector and other industries, as it offers a new way to unlock funding opportunities, reduce transaction risks, and boost compliance with tax laws.
