The Federal Inland Revenue Service (FIRS) has revealed that the adoption of e-invoicing could significantly enhance access to credit for manufacturers in Nigeria. This observation was made during a stakeholders’ engagement session held in Lagos with key players in the manufacturing sector, as part of preparations for the launch of Nigeria’s National E-Invoicing System on July 25 .
The FIRS has been engaging stakeholders across various sectors to ensure a smooth rollout of the system, which aims to revolutionize business transactions and tax administration in the country.
During his presentation to manufacturers, the lead consultant on the e-invoicing project, Mr. Sadiq Arogundade , emphasized the critical role of invoices in business transactions and their potential to ease access to credit.
He stated, “Credit is a vital factor for any country navigating today’s global economic challenges. Without credit, businesses cannot thrive. This initiative is a step toward creating a credit economy in Nigeria.”
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Arogundade explained that businesses no longer need upfront capital to sustain operations, as they can leverage invoices for financing. “You can raise an invoice, get FIRS certification for its integrity, and then present it in the money market for factoring,” he said.
He added, “Invoices represent trust, commitment, and value. This isn’t just about taxes—it’s about technology and enhancing the global competitiveness of your business. The Mandated Billing System (MBS) will enable businesses to create standardized, payable invoices for both domestic and cross-border transactions using the Universal Business Language (UBL) format .”
The e-invoicing system is designed to address challenges such as delayed payments, errors, and compliance issues. According to Arogundade, the system will automate tax compliance, improve efficiency, and provide real-time data to help the FIRS make informed decisions and enhance tax administration.
“We have built a product that automates tax compliance and ensures accuracy. The e-invoicing system will also generate real-time data on tax compliance, enabling better decision-making by the FIRS,” he explained.
Data Confidentiality Assured
To allay concerns about data security, the Acting Director of Tax Automation at FIRS, Mike Adoga , assured manufacturers of strict adherence to the Nigeria Data Protection Act . He emphasized that measures have been instituted to ensure the confidentiality and security of all data shared for tax purposes.
“I want you to rest assured that we are fully guided by the Nigeria Data Protection Act and that all data shared for tax purposes will remain confidential and secure,” Adoga stated.
The FIRS believes the e-invoicing system will not only streamline tax processes but also position Nigerian businesses to compete globally by adopting modern technological standards.
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