Key Points
- FIRS says the FIRS e-invoicing system will reduce fake invoices and improve VAT collection
- If you’re a large taxpayer, you should already be compliant with FIRS e-invoicing requirements
- If you registered your business with Qrafteq, we’ll reach out directly when there’s something you need to do about FIRS e-invoicing compliance
- We’re here to help you navigate Nigerian business compliance including FIRS e-invoicing so you can focus on actually running your business
- Let me explain what we know about FIRS e-invoicing compliance requirements and what’s still unclear
So you’ve probably been hearing about FIRS e-invoicing requirements. Maybe you saw an article that made it sound urgent. Maybe someone in your business WhatsApp group mentioned the new FIRS merchant-buyer solution. Maybe your accountant brought up electronic invoicing compliance for FIRS e-invoicing in Nigeria.
Here’s what’s actually happening.
FIRS launched an electronic invoicing system (officially called the Merchant-Buyer Solution) in August 2025. Right now, FIRS e-invoicing only applies to large taxpayers, businesses with ₦5 billion+ annual turnover. The FIRS e-invoicing deadline for these companies was November 1, 2025.
If you’re running a small or medium business in Nigeria, FIRS e-invoicing doesn’t apply to you yet.
But it’s probably coming. Let me explain what we know about FIRS e-invoicing compliance requirements and what’s still unclear.
How FIRS e-Invoicing Works in Nigeria
Instead of just creating an invoice and sending it to your customer, the FIRS e-invoicing system requires you to submit it to FIRS first. FIRS validates the invoice, gives you an Invoice Reference Number (IRN), adds a digital stamp and QR code, then you send that validated invoice to your customer.
It’s FIRS inserting themselves into every business transaction in real-time. They want to see what you’re selling, to whom, and for how much, as it happens, not months later when you file returns. The FIRS e-invoicing mandate is part of Nigeria’s broader tax digitalization effort.
The validated invoice proves the transaction is legitimate and has been reported for tax purposes. FIRS says the FIRS e-invoicing system will reduce fake invoices and improve VAT collection. Fair enough.
For B2B transactions, FIRS e-invoicing matters because your customer can’t claim input VAT unless your invoice is validated by FIRS through the FIRS e-invoicing system. So if you don’t validate your invoice, your customer probably won’t accept it.
For B2C transactions over ₦50,000, FIRS e-invoicing requirements state you have to report them to FIRS within 24 hours after you issue the invoice. This is part of the FIRS e-invoicing compliance framework for retail businesses.
Who FIRS e-Invoicing Affects Right Now
Large taxpayers only. That’s businesses with ₦5 billion+ turnover or companies registered under FIRS Large Tax Office (LTO).
About 1,000 large companies have already onboarded to the FIRS e-invoicing system. The system is live and working.
Everyone else? Not mandatory for FIRS e-invoicing yet, but the FIRS e-invoicing rollout continues in phases.
The FIRS e-Invoicing January 2026 Deadline: What’s True and What’s Not
You might have seen articles saying all VAT-registered businesses must comply with FIRS e-invoicing by January 1, 2026.
Here’s the truth: FIRS has not announced this officially.
What happened is several tax advisory firms and fintech platforms looked at FIRS’s phased rollout plan and projected that medium and small businesses would be next, probably starting January 2026. They’re probably right. FIRS has said they’ll expand the system gradually.
But as of December 2025, there’s no official FIRS notice mandating e-invoicing for businesses outside the large taxpayer category. No confirmed FIRS e-invoicing deadline has been published for SMEs.
In July 2025, FIRS explicitly said “there is no mandatory use of e-invoicing at the moment” beyond large taxpayers. They’re focused on getting the big companies sorted first with FIRS e-invoicing compliance.
So yes, FIRS e-invoicing is likely coming to smaller businesses in 2026. When exactly? We don’t know yet. FIRS will announce the official e-invoicing deadline when they’re ready. Watch for updates on the FIRS e-invoicing requirements timeline.
Why Some Articles Make FIRS e-Invoicing Sound Urgent
Because some of those articles are written by companies selling e-invoicing solutions and FIRS e-invoicing compliance platforms. Creating urgency about FIRS e-invoicing penalties drives sales. “Comply by January or face ₦1 million penalties!” gets people to sign up faster for FIRS e-invoicing services.
We’re not doing that. We’re just telling you what’s confirmed and what’s speculation about FIRS e-invoicing in Nigeria.
Right now, if you’re not a large taxpayer, you don’t have a FIRS e-invoicing deadline. When FIRS announces one for your business category, you’ll have time to prepare for FIRS e-invoicing compliance. They’ve been giving extensions and support throughout the FIRS e-invoicing rollout.
FIRS e-Invoicing Penalties: What You Need to Know
For large taxpayers who are currently required to comply with FIRS e-invoicing, the penalties under the Nigerian Tax Administration Bill are serious:
- ₦1 million for the first day of noncompliance
- ₦10,000 for each additional day
- ₦200,000 administrative penalty
- 100% of the tax due on top of that
- 2% interest above CBN’s rate
But again, these FIRS e-invoicing penalties only apply to businesses currently mandated to use the system. If FIRS hasn’t told you to comply with FIRS e-invoicing yet, you’re not facing these penalties.
How to Comply with FIRS e-Invoicing Requirements
Most businesses don’t connect directly to the FIRS e-invoicing system. The technical requirements for FIRS e-invoicing are complicated—XML formats, digital signatures, API integrations, encryption standards, NITDA accreditation. It’s a whole thing.
Instead, businesses use Access Point Providers, NITDA-accredited platforms that handle all the technical requirements for FIRS e-invoicing compliance. You create your invoice on their FIRS e-invoicing platform, they submit it to FIRS, you get back a validated invoice with the IRN and stamp. Done.
These FIRS e-invoicing platforms charge monthly fees, usually ₦10,000 to ₦50,000+ depending on your transaction volume. Duplo, SystemSpecs, and other providers offer FIRS e-invoicing services. Check the FIRS website for the full list of approved e-invoicing providers for FIRS e-invoicing compliance.
Should You Prepare for FIRS e-Invoicing Now?
If you’re a large taxpayer, you should already be compliant with FIRS e-invoicing requirements.
If you’re not a large taxpayer, here’s what makes sense for FIRS e-invoicing preparation:
Stay informed about FIRS e-invoicing updates. Watch for official FIRS announcements about when FIRS e-invoicing becomes mandatory for your category. Not projections from consulting firms or fintech companies, actual FIRS notices about the FIRS e-invoicing deadline.
Understand the FIRS e-invoicing basics. Know what the FIRS e-invoicing system is so when FIRS does announce a deadline, you’re not starting from zero. That’s partly why we wrote this post about FIRS e-invoicing in Nigeria.
Review your invoicing process for FIRS e-invoicing. How would FIRS e-invoicing validation fit into your workflow? Who creates invoices? What software do you use? Just think about it. You don’t need to change anything for FIRS e-invoicing yet.
Budget for FIRS e-invoicing compliance. If FIRS e-invoicing becomes mandatory for you in 2026, you’ll probably need to pay for an FIRS e-invoicing provider. Factor that into your budget.
But don’t panic about FIRS e-invoicing. There’s no emergency here for small and medium businesses.
The 72-Hour Review Window in FIRS e-Invoicing
When FIRS e-invoicing does apply to you, here’s something to know: after you send a validated invoice to your customer, they have 72 hours to review and either accept or reject it.
If they reject it, you have to correct or cancel it, then resubmit to FIRS for validation. After 72 hours, the invoice becomes final and can’t be changed.
This means you can’t send rough invoices with the plan to fix them later. Get the invoice details right the first time; amount, VAT calculation, description, everything because the FIRS e-invoicing system locks them in after validation.
What Qrafteq Is Monitoring About FIRS e-Invoicing
We’ll update this post when FIRS makes official announcements about expanding FIRS e-invoicing to medium and small businesses. If you registered your business with Qrafteq, we’ll reach out directly when there’s something you need to do about FIRS e-invoicing compliance.
For now, the main thing is just knowing the FIRS e-invoicing system exists and understanding how FIRS e-invoicing works in Nigeria.
If you have questions about FIRS e-invoicing compliance or any other business requirement, reach out to us. We’re here to help you navigate Nigerian business compliance including FIRS e-invoicing so you can focus on actually running your business.
Related resources:
- CAC Business Registration Guide
- Understanding VAT Registration in Nigeria
- Annual Returns Filing Requirements
This post about FIRS e-invoicing is current as of December 2025. FIRS policies may change—we’ll update this when they do. Always verify requirements directly with FIRS or consult a tax professional before making decisions.
