Firms Face New Compliance Burden Under Nigeria’s E-Invoicing Regime

Nigeria’s ongoing drive to digitise tax administration is placing fresh compliance demands on businesses as companies prepare to align their accounting systems with a new electronic invoicing framework aimed at improving real-time tax reporting and reducing revenue leakages.

The new regime introduced by the Nigeria Revenue Service is part of broader reforms designed to strengthen tax collection and improve transparency across the formal business sector.

Under the phased rollout plan, large taxpayers with annual turnover above ₦5 billion are expected to migrate first, followed by medium-sized businesses earning between N1 billion and N5 billion, while smaller firms with turnover below N1 billion will join in later stages.

The development is expected to significantly reshape how businesses issue invoices, record transactions and interact with tax authorities, especially as real-time validation and transmission of invoices become mandatory under the framework.

As part of the implementation process, the Nigeria Revenue Service has authorised Upperlink Limited as a system integrator on the national e-invoicing platform, enabling the company to connect organisations to the government’s Merchant Buyer Solution framework.

The approval allows businesses working with the firm to integrate their invoicing systems for real-time invoice issuance, validation and secure transmission in line with the new compliance requirements.

The transition reflects the increasing reliance on digital infrastructure by tax authorities to close compliance gaps and expand the tax net as governments intensify efforts to boost non-oil revenue generation.

Speaking on the development, Managing Director of Upperlink, Olusegun Akano, said the company’s appointment as a system integrator builds on its experience in regulated payment systems and enterprise technology.

According to him, the firm has delivered digital platforms for businesses, government institutions and financial service providers, while also operating as a Central Bank of Nigeria-licensed Payment Solution Service Provider and an aggregator to the Nigeria Inter-Bank Settlement System.

Akano said the company’s infrastructure would support the large-scale invoicing, reconciliation and compliance workflows required under the e-invoicing policy. He added that the firm had previously handled major public sector projects, including the AGILE Project, a five-year Federal Government initiative supported by the World Bank.

Similarly, the Chief Marketing Officer of the firm, Opeyemi Oni, described the policy as a major shift in tax administration that would compel many businesses to overhaul their existing invoicing processes to comply with the government’s digital reporting standards.

The rollout highlights growing pressure on Nigerian firms to invest in compliance technology as the Federal Government expands its digital tax ecosystem, a move expected to improve tax visibility while increasing operational costs for businesses adapting to the mandatory platform.

The framework also provides support for organisations with existing enterprise systems, as well as businesses requiring middleware or portal-based solutions to meet the new compliance obligations.