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Large businesses that fail to comply with Nigeria’s electronic invoicing (e-invoicing) requirements by June 30 risk facing penalties from July 1, a tax compliance expert has warned.
Speaking during a virtual news conference on Tuesday, the Country Director of DigiTax Nigeria, Mr. Olumide Akinsola, said the compliance window for companies with annual turnover of N5 billion and above would close at the end of June, after which regulatory enforcement would commence.
Akinsola noted that despite increasing adoption of the system, many eligible companies were yet to comply with the mandate. He disclosed that just over 1,000 of the estimated 5,000 large taxpayers had integrated with the e-invoicing framework earlier this year, leaving a substantial number outside the compliance net.
He explained that businesses that fail to transmit invoices through the Nigeria Revenue Service’s Merchant Buyer Solution platform would be unable to claim Value Added Tax (VAT) input tax credits. According to him, any VAT linked to unvalidated invoices after the enforcement date would effectively become a financial loss for the affected company.
The tax expert added that outstanding liabilities arising from non-compliance would attract interest at a rate two percentage points above the Central Bank of Nigeria’s Monetary Policy Rate, increasing the financial burden on defaulting firms.
Akinsola further announced that the second phase of the e-invoicing programme would begin in July 2026 for medium-sized businesses with annual turnover ranging from N1 billion to N5 billion. Enforcement for that category is expected between January and March 2027, while smaller businesses with turnover below N1 billion will be brought into the system later, with compliance enforcement scheduled for 2028.
Under the framework, businesses are required to generate, validate and submit invoices electronically in real time. Each approved invoice is issued with an Invoice Reference Number and a QR code to facilitate verification. The current scope of the mandate covers both VAT and withholding tax transactions.
According to Akinsola, the initiative is designed to curb tax leakages, improve compliance levels and strengthen revenue administration. He said the system would boost transparency, enhance revenue collection and help narrow the country’s tax gap while aligning Nigeria with global e-invoicing standards already adopted in several African and European countries.
He urged government agencies to intensify stakeholder engagement, expand technical support and improve digital infrastructure to ensure smooth implementation of the programme nationwide.
The DigiTax Nigeria chief also advised businesses to begin preparations immediately by reviewing their invoicing processes, engaging accredited service providers and training relevant personnel. He noted that companies already using e-invoicing have reported smoother VAT filing processes, improved cash-flow management and greater operational efficiency.
Akinsola stressed that businesses should regard compliance not merely as a regulatory requirement but as a strategic investment in transparency, efficiency and long-term sustainability. He added that Africa loses an estimated N20 trillion annually to tax gaps and revenue leakages, highlighting the need for stronger tax administration systems across the continent.
