February 17, (THEWILL) — The Nigeria Revenue Service (NRS) has begun a phased rollout of an electronic invoicing and fiscal monitoring system to strengthen tax compliance and boost revenue.
The reform comes as Nigeria’s tax-to-GDP ratio remains below 10 percent well under the African average of 16–18 percent highlighting persistent revenue gaps in Africa’s largest economy. With VAT set at 7.5 percent and compliance uneven across sectors, authorities say digital monitoring is critical to reducing leakages and underreporting.
Under the new framework, businesses will issue electronic invoices that are transmitted in real time to NRS through a central platform. Each invoice will carry a unique identifier, enabling automated validation, live transaction tracking, and improved audit efficiency. The rollout will begin with large taxpayers, who account for more than half of non-oil tax revenues, before extending to smaller firms.
The system is expected to curb tax evasion, enhance transparency, and improve data accuracy. While businesses may face short-term compliance costs to upgrade their systems, NRS maintains that digitisation will simplify reporting and strengthen long-term revenue mobilisation as the government seeks to reduce reliance on oil earnings.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
