Electronic Invoicing in Nigeria

Mandatory Use

Electronic invoicing in Nigeria is being implemented progressively based on company size.The system initially targeted large taxpayers with annual revenues of ₦5 billion or more, requiring them to integrate directly with the NRS electronic invoicing platform.

The rollout schedule includes a gradual extension to other taxpayers:

• July 1, 2026: implementation for medium-sized taxpayers.
• July 1, 2027: implementation for small businesses or emerging taxpayers.

The system covers B2B, B2G, and B2C transactions, including domestic transactions and certain international operations.
 

Invoice Format

Electronic invoices must be generated in a standardized national XML format to allow for automatic processing by both tax authorities and corporate systems.

Each invoice registered in the system is assigned a unique Invoice Reference Number (IRN), which ensures full traceability throughout the e-invoicing platform.

Visual representations of invoices must include a QR code that allows verification of the document’s authenticity.

Electronic Signature

The system incorporates digital signature and cryptographic sealing mechanisms applied during the invoice validation process. These elements ensure the authenticity of the issuer, the integrity of the document, and the traceability of transactions within the tax system.

Archiving

Taxpayers must retain electronic invoices in digital format for a minimum of 6 years, ensuring accessibility and readability in case of audits or tax controls.

Prerequisites

To issue electronic invoices in Nigeria, companies must meet several requirements:

• Be registered with the Nigeria Revenue Service, NRS.
• Integrate their ERP system or invoicing software with the MBS platform.
• Adapt their systems to generate invoices in a structured format.
• Connect to the system through channels authorized by the tax authority.

Tax Control

The electronic invoicing system allows the tax authority to apply Continuous Transaction Controls over business operations.

B2B and B2G invoices must be submitted to the tax system for validation, while specific B2C transactions are required to be reported within near real-time deadlines.

This model helps detect tax discrepancies, reduces VAT fraud, and improves the overall traceability of economic transactions.

Invoice Workflow

The electronic invoicing process in Nigeria generally follows these steps:

1. The issuer generates the electronic invoice from their invoicing system or ERP.
2. The invoice is transmitted to the MBS platform through authorized channels.
3. The tax system validates the information and assigns a unique identifier.
4. Once validated, the invoice can be sent to the buyer.
5. The document can be presented in electronic format or as a visual representation with a QR code.
6. Both the issuer and the recipient must retain the invoice for tax and accounting purposes.