On 29 April 2025, Nigeria’s Federal Inland Revenue Service (FIRS) marked a major milestone in its digital tax transformation agenda by officially launching the Merchant Buyer Solution (FIRSMBS)—a centralized e-invoicing platform that will soon become the backbone of transaction validation for VAT-registered businesses nationwide.
The launch, conducted in coordination with the National Electronic Invoicing Inter-Agency Steering Committee, signals that the infrastructure is now in place to support the country’s upcoming e-invoicing mandate. The platform rollout begins with a pilot phase targeting large taxpayers, scheduled for July 2025, and will gradually extend to include medium and small enterprises.
1. What Is FIRSMBS (eInvoice) and Why Does It Matter?
1.1 Legal and Strategic Foundation
FIRSMBS is an official government tool introduced under Nigeria’s FIRS Digital Transformation Strategy (2023/24) and grounded in Section 25, Part 5 of the Tax Administration and Enforcement Act of 2007. It enables the electronic creation, validation, and storage of invoices, credit notes, and debit notes—effectively replacing traditional paper formats.
This initiative supports a broader public policy goal: improving VAT collection, reducing fraud, and enabling near real-time tax oversight.
1.2 A Digital Bridge for All Transaction Types
The FIRSMBS system is designed to handle:
- B2B (Business-to-Business) transactions
- B2C (Business-to-Consumer) exchanges
- B2G (Business-to-Government) procurement flows
This cross-sector scope ensures the platform’s broad utility and prepares the tax system for full digital integration in both public and private sectors.
2. How Does the System Work?
2.1 Registration and Access
To begin using FIRSMBS:
- Businesses must register with FIRS and obtain a Tax Identification Number (TIN)
- Users must complete email verification through the portal
- Taxpayers must submit additional onboarding information through the FIRSMBS portal to be authorized for e-invoicing
Once authorized, businesses can access the platform and issue e-invoices in JSON or XML format, in line with the official schema defined by FIRS.
2.2 Issuance and Clearance Model
Nigeria has adopted a pre-clearance model, in which:
- Invoices must first be validated by the FIRSMBS system before being delivered to buyers
- Once approved, the invoice receives a unique identifier
- Both buyer and seller are notified and can reject or cancel the invoice under defined conditions
This pre-clearance model ensures that only compliant, validated transactions enter the fiscal record—boosting transparency and tax integrity.
2.3 Integration Options
Businesses have two primary ways to issue e-invoices:
- Directly through the FIRSMBS Portal
- Automatically via integration with the FIRSMBS e-Invoice API, suitable for ERP or accounting systems
3. Rollout Timeline: From Pilot to Full Mandate
3.1 Key Milestones
- 18 September 2024: FIRS formally introduced the e-invoicing system via legal framework
- 18 February 2025: Stakeholder engagement began with large taxpayer groups
- 29 April 2025: FIRSMBS officially launched
- July 2025: Pilot rollout for select large taxpayers begins
- Late 2025 onward: Expansion to all large taxpayers, followed by medium and small businesses
This phased approach is designed to accommodate onboarding challenges while ensuring readiness across all segments.
4. What’s Inside a Nigerian E-Invoice?
The FIRSMBS e-invoice is a digital representation of the underlying transaction and must include all essential fields, such as:
- Supplier and buyer details (including TINs)
- Line-level item descriptions and quantities
- Unit prices, taxes, and total invoice value
- Applicable tax rates and invoice type (e.g., credit or debit note)
All documents must adhere to a standardized schema, allowing seamless exchange between different accounting platforms and the FIRS system.
5. Key Benefits for Taxpayers
The FIRSMBS platform offers several strategic advantages:
| Benefit | Description |
| Improved Compliance | Ensures all transactions are tax-validated before exchange |
| Operational Efficiency | Reduces invoice processing time and errors |
| ERP Compatibility | API allows real-time integration with business systems |
| Cost Savings | Eliminates paper and manual reconciliation burdens |
| Real-Time Oversight | Enables FIRS to detect discrepancies quickly |
With these features, the platform serves not only the tax authority but also businesses aiming to modernize their compliance operations.
6. Next Steps for Businesses
Taxpayers should begin preparing now by:
- Registering for a TIN (if not already done)
- Accessing the FIRSMBS portal and completing email verification
- Submitting onboarding details to gain e-invoicing authorization
- Testing system integration with ERP/accounting software
- Training finance and IT teams on e-invoicing workflow and error handling
Early preparation will be key, especially for large taxpayers entering the July 2025 pilot phase.
Disclaimer
This blog post is intended for informational purposes only and does not constitute legal, tax, or system integration advice. Regulatory frameworks and technical specifications may change. Businesses should consult the Federal Inland Revenue Service (FIRS) and licensed implementation providers to confirm their specific obligations and readiness requirements.
