In an effort to to modernise transactional processes in Nigeria, while also promoting transparency and accountability in tax management, the Federal Inland Revenue Service (FIRS), has engaged large taxpayers on integration of Merchant Buyer Solution (FIRSMBS) e-Invoicing system.
The e-invoicing, which leverages the Universal Business Language (UBL) framework according to FIRS would facilitate the seamless creation, validation, and exchange of electronic invoices while also adhering to international best practices.
Speaking at a stakeholder engagement forum on the implementation of the national e-Invoicing solution in Lagos yesterday, the Chief of Staff to the Executive Chairman, FIRS, Zacch Adedeji, Mr. Tayo Koleosho, said the new product would effectively replace old methods of paper transaction.
He said, "The FIRSMBS (eInvoice) is a digital representation of transactions between suppliers and buyers, effectively replacing traditional paper or electronic documents such as invoices, credit notes, and debit notes."
Koleosho emphasised that the platform will unify data in silos, providing insights into supply chains, purchasing trends, and business transactions, which will help policymakers make data-driven fiscal and economic decisions.
According to him, "So when we even talk about distributions, and where are goods being supplied, where are they going, what kind of things are we buying as a country? All these are data that are currently in silos, and there is no unifying place where we can see this.
"So this is going to help us to aggregate a lot of data, buying patterns, supply patterns, manufacturing patterns, what kind of invoices, what kind of businesses are buying what, are supplying what. All this data will then help our policy and legislative and executive to start making more data-driven decisions.
"So that's how we believe it's going to help. So the government can then know and have more data to make decisions on where the impacts are going to be, where the focus should be, as we move along as a country."
On meeting with the large taxpayer, Koleosho, noted it was timely to meet them as the nation journey into tax administration Solution 3.0.
According to him, "The idea is to meet with the large taxpayers and understand what their own requirements are, as we continue our journey into what we call a Tax Administration Solution 3.0, where there will be more integration with the electronic reporting systems, the POS systems, and all the other cloud solutions.
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"So that our businesses can be more efficient, and they can have a better integration and exchange of data with the tax administration, and also provide more data for their business, and make intelligent decisions for their businesses, and even for the country to make both fiscal and monetary policy decisions."
Commenting on the new product, the coordinating Director, Large Taxpayers Group, FIRS, Amina Ado, said the e-invoicing aimed at providing real-time visibility into business transactions.
He said, "As you may be aware, the FIRS has embarked on the implementation of a National E-Invoicing Solution, a transformative initiative aimed at providing real-time visibility into business transactions and financial data."
He said the initiative is a strategic step towards fostering efficiency, transparency, and accountability in Nigeria's tax administration system.
"Our engagement today serves as an important platform for dialogue, collaboration, and shared insights as we navigate the pilot rollout of this solution. The e-invoicing system is not just a technological innovation but a strategic enabler that aligns with international best practices, ensuring seamless tax compliance, reducing revenue leakages, and enhancing ease of doing business in Nigeria," Ado said.
