FIRS to Launch e-Invoice System to Revolutionize Nigeria’s Tax Administration. The Federal Inland Revenue Service (FIRS) is set to introduce a new digital solution, the FIRS e-Invoice, aimed at modernizing Nigeria’s tax system and boosting efficiency.
This initiative, aligned with the Tax Administration and Enforcement Act of 2007, will streamline invoicing for business transactions across sectors, according to FIRS Executive Chairman, Dr. Zacchaeus Adedeji.
Speaking at the “Emerging Tax Matters” stakeholders’ engagement organized by the Lagos Chamber of Commerce and Industry (LCCI), Adedeji, represented by Mrs. Oti Olaniyi, Acting Director of the Medium Taxpayers Department, explained that the e-Invoice system is part of FIRS’ ongoing digital transformation strategy.
This tool is designed to ensure real-time validation of transactions between businesses, consumers, and government entities, enhancing transparency and efficiency in tax administration.
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Adedeji emphasized the importance of adapting to emerging tax challenges, noting that Nigeria’s evolving tax landscape presents both opportunities and hurdles.
He highlighted recent organizational restructuring within FIRS, as well as broader tax reforms aimed at fostering sustainable growth and equitable development through technological innovation and transparency.
“As we move forward, our collective efforts will shape a more prosperous and resilient Nigeria. We encourage collaboration and constructive feedback to make these reforms a success,” Adedeji stated.
He further stressed the importance of tax incentives to stimulate local industries and drive economic development. However, he warned that transparency and careful evaluation are critical to ensuring these incentives align with national growth objectives.
Addressing Nigeria’s vast informal sector, which consists of many small and micro businesses outside the formal tax system, Adedeji revealed that the government plans to introduce simplified tax regimes and registration incentives to engage this sector effectively.
LCCI President, Mr. Gabriel Idahosa, urged FIRS to strengthen its collaboration with the private sector to ensure that tax policies promote innovation and competitiveness.
He praised FIRS for its ambitious goal of increasing tax revenue by 57%, targeting N19.4 trillion in 2024, but noted that achieving this would require continued reforms and compliance from both businesses and citizens.
Idahosa also pointed out that Nigeria’s tax-to-GDP ratio, currently at 10.86%, falls short of the government’s 18% target within the next three years.
To achieve this, he called for more straightforward tax policies and a focus on fostering trust through transparency and fairness.
“Reaching these goals demands the collaboration of both the public and private sectors,” Idahosa said. He also recommended tax breaks for wage increases and the removal of barriers to foreign currency transactions to create a more robust investment climate.
As Nigeria’s fiscal policy enters a critical phase in 2024, efforts to expand the tax base, simplify the system, and boost compliance will be key to securing the country’s economic future.
Both the government and businesses will need to work together to ensure the success of these reforms.
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