The Federal Inland Revenue Service (FIRS) has announced plans to launch the FIRS e-Invoice, a digital platform designed to streamline invoice management in accordance with the tax Administration and Enforcement Act of 2007.
This development was highlighted by Dr. Zacchaeus Adedeji, Executive Chairman of FIRS, during the LCCI-FIRS Organised Private Sector Stakeholders Engagement in Lagos, themed “Emerging Tax Matters.”
Represented by Mrs. Oti Olaniyi, Acting Director of the Medium Taxpayers Department, Dr. Adedeji emphasized the necessity of the e-invoice system as Nigeria progresses in modernizing its tax infrastructure.
He stated that this initiative is part of a broader digital transformation strategy aimed at enhancing real-time transaction validation and storage across various sectors, including business-to-business, business-to-consumer, and business-to-government transactions.
Adedeji pointed out that while emerging tax matters in Nigeria present certain challenges, they also offer significant opportunities.
He noted the recent organizational restructuring within FIRS and highlighted various tax reforms reshaping the taxation landscape. “By embracing reforms, leveraging technology, and ensuring transparency, we can create a tax system that fosters sustainable growth and equitable development,” he said.
He further urged stakeholders to provide constructive feedback and engage in collaboration, stating, “Our collective efforts will pave the way for a more prosperous and resilient Nigeria.”
Addressing the informal sector, which makes up a substantial portion of Nigeria’s economy, Adedeji acknowledged the unique challenges it presents due to many small and micro businesses operating outside the formal tax framework.
He suggested exploring simplified tax regimes and registration incentives to effectively engage this sector.
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In a response, Mr. Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI), encouraged the FIRS to collaborate with both the private sector and government to ensure tax policies that promote business innovation and competitiveness.
He noted the significant transformations Nigeria’s tax system has recently undergone, driven by reforms aimed at boosting revenue and simplifying compliance.
Idahosa revealed that under new leadership, FIRS aims to increase tax collection by 57%, targeting a revenue goal of N19.4 trillion for 2024. He highlighted the current tax-to-GDP ratio of 10.86% and the government’s ambition to reach 18% within the next three years through newly introduced reforms.
“The success of these reforms hinges on concerted efforts from both public and private sectors,” Idahosa remarked. He stressed the importance of fostering trust through transparency and fairness, while advocating for a culture of tax compliance among businesses and citizens.
He concluded, “As we approach 2024, Nigeria’s fiscal policy stands at a crucial juncture; expanding the tax net and streamlining the system are essential for securing the country’s economic future.”
