Nigeria: NRS expands mandatory e-invoicing rollout to medium and emerging taxpayers

Phased implementation of the Electronic Fiscal System follows the successful onboarding of Large Taxpayers, with structured timelines and compliance enforcement planned under statutory powers.

The Nigeria Revenue Service (NRS) has announced the continuation of the phased rollout of its E-Invoicing and Electronic Fiscal System (EFS), also known as the Merchant Buyer Solution (MBS), to Medium and Emerging Taxpayers.

In a notice issued on 23 February 2026, the Service informed taxpayers, tax practitioners, and the general public that the expansion forms part of its broader mandate to enhance tax administration, improve transparency, and promote voluntary compliance through technology-driven solutions.

The rollout is grounded in Section 23 of the Nigeria Tax Administration Act (NTAA), which empowers the Service to deploy technology for the administration and collection of taxes, and Section 158 of the Nigeria Tax Act (NTA), which requires taxpayers to implement the fiscalisation system deployed by the Service.

Under the structured implementation plan, the expansion to Medium and Emerging Taxpayers will follow defined stages: stakeholder engagement, pilot rollout, go-live, post-go-live review, and compliance enforcement. Each phase will be supported by clearly defined timelines and annual turnover thresholds tailored to the relevant taxpayer segments.

Taxpayers are advised to identify their applicable category and adhere to the timelines communicated by the Service. The NRS has encouraged in-scope businesses to participate actively in stakeholder engagement and onboarding activities as further guidance is issued.

The latest expansion builds on the earlier rollout to Large Taxpayers. Following extensive consultations and engagement sessions — including outreach to tax consultants and professional bodies — the Service conducted a pilot deployment in January 2025. The MBS officially went live for Large Taxpayers on 1 August 2025, with the effective implementation deadline subsequently extended to November 2025 to accommodate operational and transitional considerations.

According to the NRS, significant progress has since been achieved, with most Large Taxpayers successfully onboarded and many already transmitting invoice data through the MBS platform. The Service now aims to replicate that momentum as it extends the system to additional taxpayer segments.

Earlier, NRS released a timeline for the phased implementation of EFS.