With days to the July 31 deadline for large taxpayers to comply with Nigeria’s mandatory electronic invoicing regime, businesses already implementing the system say the technology itself is proving manageable, but data quality, internal processes, and uncertainty over compliance requirements remain the biggest hurdles.
The electronic invoicing regime requires companies with annual turnover of at least N5 billion to issue and transmit invoices electronically through the National Revenue Service’s (NRS) Merchant Buyer Solution (MBS) platform. The reform is designed to give the tax authority real-time visibility into business transactions, improve compliance and reduce revenue leakages. While some large taxpayers are already transmitting invoices through the platform, others are still completing integration, testing, and validation ahead of the deadline.
“We went live before the deadline, and the integration has been seamless so far,” said Dapo Adeyemi, applications manager for ERP.
“At the end of every day, invoices generated on our ERP system are transmitted to the NRS, and we receive feedback showing whether each invoice has been validated and signed.”
Despite the smooth rollout, Adeyemi said businesses are beginning to encounter operational challenges.
“The reality on the ground is that there is still some misalignment between the old Tax Identification Number (TIN) and the new Tax ID,” he said.
“There are cases where we receive a customer’s TIN, and when we transmit the invoice, it gets rejected because of the mismatch. We then have to go back to the customer to validate the information. Since the NRS allows only a 24-hour window to correct transmission failures, delays in getting responses from customers can become a challenge.”
He added that companies are continuing to engage with the tax authority as the system evolves.
A group head of tax at a leading Nigerian financial institution, who requested anonymity because he was not authorised to speak publicly, said his organisation had connected to the NRS network and had questioned how large taxpayers would transact with suppliers that are yet to come under the e-invoicing mandate, pointing out that many smaller businesses are still outside the system and asking how invoices from such suppliers would be treated until they are brought into the rollout.
The uncertainty reflects a broader challenge facing businesses as the compliance deadline approaches, which is understanding what the NRS considers full implementation.
Yele Oyekola, chief executive officer and co-founder of Duplo, said businesses should understand that compliance extends far beyond registration.
“Affected businesses should have completed onboarding on the Merchant Buyer Solution, integrated their systems through an approved Access Point Provider or System Integrator, completed validation and testing, and started transmitting invoices to the NRS platform,” he said.
“They should also review invoice data, VAT classifications, approval processes, and customer and supplier records to ensure the information being submitted is accurate. Registering on the platform without being able to issue and transmit compliant invoices does not amount to full compliance.”
Oyekola said one of the most common implementation mistakes is treating e-invoicing as solely an IT or tax project.
“It affects finance, procurement, operations, sales, and customer engagement. All these teams need to be involved in the implementation process,” he said, adding that businesses should also test how their systems handle rejected invoices, cancellations, credit notes, and high transaction volumes before going live.
AyoDapo Bamidele, a tax technology expert, said most implementation challenges emerge long before companies begin transmitting invoices.
According to him, poor-quality financial records, incomplete invoice data, inaccurate tax determination, and invoice formats that do not align with the NRS standard are among the most common readiness issues businesses face.
He added that many organisations also underestimate the technical work involved, with finance and technology teams often requiring extensive support to understand invoice workflows and system integration.
“Integration could take up to three months, including readiness assessment,” Bamidele said, explaining that businesses expecting a quick technology deployment often overlook the operational changes required to achieve compliance.
Despite the implementation challenges, businesses say the long-term benefits outweigh the initial costs.
“I think it will simplify our tax administration process,” Adeyemi said.
“One of the incentives the NRS has provided is that once you’re compliant, claiming input VAT becomes easier because they have visibility into the transactions. That is a huge benefit.”
Oyekola said businesses also stand to reduce the time finance teams spend on manual reconciliation, payment disputes and audit preparation, while strengthening audit trails through more structured digital records.
As the compliance deadline approaches, experts advised companies still implementing the system to prioritise resolving integration issues, cleaning customer and supplier data, reviewing tax classifications, testing real transaction scenarios and training employees before going live.
They also urged medium-sized taxpayers not to wait for their own compliance timeline before beginning preparations, arguing that early planning would reduce implementation risks and allow businesses to adapt to a tax system that is increasingly moving towards real-time transaction reporting.