Nigeria
E-invoicing and ERP software for Nigeria — NRS compliant
The national e-invoicing system is in force for large and medium taxpayers, with smaller ones to follow. Get a validated invoice reference number before you issue, and handle withholding properly.
Compliance summary
Mandatory now- Tax authority
- Nigeria Revenue Service (NRS, formerly FIRS)
- E-invoicing
- Mandatory — large and medium taxpayers in force; smaller segments phased
- VAT rate
- 7.5%
- Currency
- NGN
Last reviewed . Rates and deadlines change — confirm the current position with the authority above before you act on it.
What your invoice must carry
What the e-invoicing system requires
-
A validated invoice reference number
Invoices are submitted through an approved access point and carry a validated IRN. Scope covers business, government and consumer transactions for VAT-registered suppliers, resident or not.
-
Withholding with a credit receipt
Deduction at source per transaction, with a credit receipt carrying the counterparty's tax identifiers, and two different remittance dates depending on whether it is federal or state.
-
Reverse charge on imported services
Where a non-resident supplier is not registered, the Nigerian recipient self-charges VAT — an output and input pair with no supplier invoice, which still has to be fiscalised.
-
Payroll routes to the state, not the centre
PAYE remits to the employee's state revenue service while pension and other funds go to federal agencies on their own schedules. A multi-state employer needs per-state routing.
The name changed, the obligation did not
The federal revenue service was renamed the Nigeria Revenue Service from January 2026, and the tax statutes were reorganised at the same time. Most businesses still say FIRS, and most search for it that way.
What matters commercially is that the e-invoicing programme moved out of pilot into enforcement for large taxpayers, then medium ones, on a published schedule — with the smallest segment still ahead of it.
Two deadlines for the same deduction
Withholding remits to the federal service on one date and to state revenue services on another. That single fact defeats a surprising number of systems, because it means a deduction cannot be modelled as one liability with one due date.
It has to be split by the nature of the payment and the counterparty, and then reported twice, on two calendars.
Small companies are exempt from charging VAT, not from everything
Businesses under the turnover floor need not charge VAT, and the standard rate is lower than most of the region at 7.5%. Neither fact removes withholding obligations or the phased e-invoicing timetable, and conflating them is how businesses arrive late.
Common questions
Is e-invoicing mandatory in Nigeria?
It is in force for large and medium taxpayers, with smaller segments still being phased in on a published schedule. Invoices are submitted through an approved access point and carry a validated invoice reference number, and scope covers business, government and consumer transactions for VAT-registered suppliers, resident or not.
Is the Nigerian tax authority FIRS or NRS?
The federal revenue service was renamed the Nigeria Revenue Service from January 2026, and the tax statutes were reorganised at the same time. Most businesses still say FIRS and search for it that way, but the obligation itself did not change with the name.
What is the VAT rate in Nigeria, and are small companies exempt?
The standard rate is 7.5%, lower than most of the region. Businesses under the turnover floor need not charge VAT, but that does not remove withholding obligations or the phased e-invoicing timetable — conflating the two is how businesses arrive late.
Why does Nigerian withholding have two deadlines?
Withholding remits to the federal service on one date and to state revenue services on another, so a deduction cannot be modelled as one liability with one due date. It has to be split by the nature of the payment and the counterparty, then reported twice on two calendars, with a credit receipt carrying the counterparty's tax identifiers.
How does Nigerian payroll route its remittances?
PAYE remits to the employee's state revenue service, while pension and other funds go to federal agencies on their own schedules. A multi-state employer therefore needs per-state routing rather than a single payroll liability account.
Rates, regimes and deadlines in this summary change, and many countries are actively legislating on e-invoicing. This is general information, not tax or legal advice — confirm the current position with the authority named above or with your tax adviser before you rely on it.
Markets
Modules
Free tools
Talk to us about your business
Tell us what you run and we will come back with a straight answer about fit, timeline and price.