Large companies in Nigeria risk regulatory sanctions if they fail to connect their invoicing systems to the National Revenue Service (NRS) electronic invoicing platform by the end of June, as the government accelerates its shift to real-time tax monitoring.
The new system requires businesses to generate invoices digitally and transmit them to the NRS in real or near real time. Each invoice is authenticated on the platform, creating a verifiable digital trail that allows tax authorities to track transactions and match them against filings.
Speaking during a webinar, Mohammed Bawa said companies that fail to meet the deadline will be treated as defaulters under the rollout plan, exposing them to penalties.
The June timeline applies to companies with annual turnover above N5 billion, estimated at about 5,000 large taxpayers nationwide, marking a significant shift from traditional self-reporting to continuous, data-driven compliance.
Previously, firms filed VAT returns monthly through TaxPro Max, with invoices largely unverified until periodic audits. The new Merchant Buyer Solution (MBS) introduces a real-time verification layer, allowing authorities to monitor transactions as they occur.
Early adoption has been modest. About 1,000 firms, roughly 20 per cent of eligible taxpayers, have begun integration, including MTN Nigeria, IHS, and Huawei Nigeria.
For businesses, the reform goes beyond tax compliance. It requires upgrading accounting systems, strengthening record-keeping, and adapting operations to meet real-time reporting demands.
While large firms face a June deadline, medium-sized businesses, those with turnover between N1 billion and N5 billion, are currently in the engagement phase. Their pilot is expected in the second quarter of 2026, with full rollout by July and enforcement from January 2027.
Smaller businesses will have a longer transition window, with implementation stretching into 2027 and enforcement beginning in 2028.
The government says the reform will boost transparency, reduce revenue leakages, and align Nigeria with global best practices seen in countries like Italy, Brazil, and Mexico.
However, businesses have raised concerns around compliance costs, system readiness, data privacy, and increased regulatory visibility.
Despite these concerns, officials insist the system will ultimately reduce disputes and limit the need for frequent audits by ensuring both taxpayers and regulators operate from the same verified data.
As the June deadline approaches, the success of the rollout will hinge on how effectively authorities enforce compliance while supporting businesses navigating the transition to a fully digital tax regime.
