Designed under the Merchant-Buyer Model, the platform promises to make tax compliance faster, more transparent, and more efficient for businesses.

What makes this rollout remarkable is that MTN Nigeria became the first taxpayer in the country to transmit live electronic invoices to the FIRS, effectively kicking off the e-invoicing era.

Huawei Nigeria and IHS Nigeria quickly followed, having successfully completed test transmissions and now poised to go fully live.

The platform, which went live on August 1 after a successful pilot phase that began in November 2024, is being deployed first to large taxpayers, companies with an annual turnover of ₦5 billion and above.

In less than two weeks, over 1,000 companies, representing 20% of the 5,000 eligible firms, have already begun integration with the FIRS Merchant-Buyer System (MBS) platform. The rest are expected to complete onboarding before the November 1 deadline.

“In collaboration with the National Information Technology Development Agency (NITDA), we have incorporated service providers as both System Integrators and Access Point Providers to facilitate onboarding, integration, and invoice transmission,” explained Dare Adekanmbi, special adviser on Media to FIRS Chairman, Zacch Adedeji.

FIRS commended early adopters like MTN Nigeria, Huawei Nigeria, and IHS Nigeria for demonstrating leadership and commitment to voluntary compliance.

The service also announced a three-month extension to the onboarding deadline, now set for November 1, 2025, to allow more companies to meet operational requirements.

The e-invoicing solution, part of the National Electronic Fiscal System (EFS), provides real-time visibility into commercial transactions, ensuring the authenticity, accuracy, and completeness of invoices.

By aligning with global best practices, it supports the Federal Government’s revenue assurance drive, reduces tax evasion, and modernises tax administration in line with the Nigeria Revenue Services Reform Act.

With pioneers like MTN, Huawei, and IHS setting the pace, FIRS is confident that the new system will lay the foundation for a single, harmonised source of truth for government revenue, and a more transparent business environment for Nigeria.

The code was launched on Wednesday by FIRS Chairman Zacch Adedeji at the Revenue House in Abuja, as part of the 2024 Customer Service Week celebrations themed “Above and Beyond.”

A statement from the FIRS signed by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman said Nigeria has become the sixth African nation to adopt USSD technology for simplifying tax administration.

The service aims to provide easy, real-time access to essential tax information and services without the need for internet connectivity, further promoting accessibility across urban and rural areas.

The USSD code allows taxpayers to retrieve their Taxpayer Identification Number (TIN), verify their Tax Clearance Certificate (TCC), access information on tax types and rates, locate FIRS offices, and address general tax-related inquiries. The service is available on all mobile networks in Nigeria, offering a simplified means for citizens to manage their tax obligations.

At the launch, Adedeji emphasized the importance of this development, stating, “This technological leap reflects our dedication to creating a tax system that is efficient, transparent, and responsive to the needs of taxpayers.” He encouraged all citizens to utilize the USSD service for ease of access to tax services.

The FIRS also unveiled its Customer Centricity Guide, a manual outlining policies, processes, and procedures aimed at placing taxpayers at the center of its operations. The guide emphasizes respect, professionalism, and efficiency, ensuring that taxpayers are treated as key partners in nation-building.

Adedeji highlighted that the guide and the USSD code represent FIRS’s commitment to service excellence, noting that both initiatives are designed to foster trust and encourage voluntary tax compliance. “The taxpayer is not just a client but a valued partner,” he said, reinforcing the importance of collaboration between FIRS and Nigerian taxpayers.

Nnenna Akajemeli, National Coordinator of Servicom, commended FIRS for its efforts to enhance taxpayer services, recognizing the launch of the USSD code and Customer Centricity Guide as significant strides in simplifying tax compliance and improving public engagement. She remarked, “These initiatives ensure that citizens and taxpayers are delighted at the quality of service you render.”

The upper legislative chamber through its Committee on Finance on Monday, consequently, urged the Federal Inland Revenue Service (FIRS) to suspend the tax waivers being largely abused and substitute it with a rebating system.

The Senate’s objection to the allegedly abused tax waivers came to the fore during the 2024 budget presentation of FIRS to its committee on Finance.

Also, Zacch Adedeji, the chairman of FIRS, who made projection of N19.4tn as targeted total tax collection for 2024, insisted that the fresh N2.7tn Tax Credit planned for road construction in the country by the Central Bank of Nigeria (CBN), should be stopped.

In his remarks at the budget presentation session, Senator Sani Musa, the chairman of the committee, told the FIRS Chairman that tax waivers abuse which has cost the country about N17tn loss within the last five years should be suspended and substituted with rebating system.

He said,

“Your projection of N19tn as total tax collection for 2024 is good when compared to N11.16tn achieved in 2023 but the senate believes that you can do more even to the tune of N30tn if required measures are put in place.

“As impressive and encouraging the performance and projections of FIRS are ,  under your leadership , this committee and by extension ,  the Senate , on a serious note , urge you to look at the direction of tax waivers largely being abused with attendant and avoidable losses being incurred  on yearly basis . Available records show that within the last five years, about N17tn have been lost by the country to tax waivers. It should be suspended and possibly substituted with a rebating system.”

The FIRS chairman, in his presentation, informed the committee that to save Nigerians from multiple taxation, FIRS in collaboration with a committee set up by the President Bola Tinubu, would reduce the 62 different taxes to 8.

He noted, “President Bola Tinubu has seen the issue of multiple taxation as a pool of problems. That is why he set up the presidential committee on tax reforms and fiscal policy. As of today in Nigeria, we have 62 types of taxes being collected. The sad news about that is that less than eight out of the entire 62, accounted for 97 per cent of the collection.

“We are already consulting and engaging the state government on it. At the end of the day, we won’t have more than eight or nine taxes that the state and federal government would be collecting.”

The PUNCH reported that on controversy concerning the implementation of the Tax Credit Scheme for road construction by the CBN, the FIRS boss insisted that the N2.5tn earlier committed to it, must be fully implemented before thinking of any fresh one.

He said, “Regarding tax credit, what I said was that the programme is laudable but that the N2.5trn being spent on it by NNPCL should be exhausted before bringing a fresh request.

“N2.7tn fresh request being made should not be entertained because all NNPC revenue should not be spent on roads when the Ministry of Works is there.”

Recall that FIRS collected a record N12.37tn in tax revenue for the federation in 2023, surpassing the year’s target of N10.7tn.

According to Dr Zacch Adedeji, the chairman, FIRS, the new target is achievable because of an effective tax collection system and a viable economic environment for businesses to prosper.

Giving a breakdown of the figures, one of the agency’s coordinating directors, Mrs Amina Ado, disclosed that oil revenue accounted for N3.17tn of the total, representing 25.6 per cent, while non-oil revenue was 74.4 per cent at N9.2tn.

According to a statement signed by Special Adviser on Media to the FIRS chairman, Dare Adekanmbi, the disclosure was made at the opening of a two-day strategic management retreat of the agency held at the Congress Hall of Transcorp Hilton Hotel in Abuja, on Wednesday.

The agency noted that its initial tax target of N10.7tn for 2023 was reviewed upwards to N11.5tn by the agency because of the exchange rate.

Commenting on 2024’s target, FIRS’s chairman, Adedeji said, “What determines whatever we have comes from micro-economic indices because when the economy runs well, we are going to be taxing prosperity, not poverty.

“We will focus on the fruits and not the seeds. We need to ensure we have that viable economic environment that will lead to economic prosperity. And for us at FIRS, it is just to put the system in place to aid effective collection.

“We are not a revenue-generating agency, but a revenue-collection agency. With the plan of President Bola Tinubu to rejuvenate the economy, companies are going to grow and prosper,” he said.

In his goodwill message, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, stressed the need for an increase in tax revenue to enable the government to discharge its responsibilities to the citizenry.

He said, “First of all, I commend the FIRS chairman and the rest of his team for coming together right from the beginning of the financial year to come to rub minds and put up a strategy for increasing tax revenue.

“Tax revenue in Nigeria is low. The collection level should be much higher as we have seen in other African countries not to talk of the developed countries. It is at 10 per cent of the Gross Domestic Product (GDP) when at the highest level, it goes around 55 per cent.

“What the chairman and his team have done is build on already-established performance. In 2023, FIRS met his financial target and even surpassed it. But they need to do more. And that is what the chairman and his team will be discussing for the two days to make sure they finalize plans to substantially increase internally generated revenue.”

In her own goodwill message, the Accountant-General of the Federation, Dr Oluwatoyin Madein, lauded the FIRS for contributing 70 per cent of the total revenues for the federation.

Nigeria has been making moves to increase its tax revenues. During his 2024 budget presentation, President Tinubu said, “We are currently reviewing our tax and fiscal policies. Our target is to increase the ratio of revenue to GDP from less than 10 per cent currently to 18 per cent within the term of this Administration. The government will make efforts to further contain financial leakages through effective implementation of key public financial management reforms.”

Zacch Adedeji (Dr), the new chairman of the Federal Inland Revenue Service, FIRS, said on Monday, that government revenue is low amid a huge public debt.

He made the remarks while taking over the mantle of leadership of the agency from his predecessor, Muhammad Nami, noted that about 96 per cent of Federal Government revenue was spent on debt servicing last year, stressing that the situation is not sustainable, according to Vanguard report.

This is even as the former chairman of the revenue agency, Nami, said the FIRS generated N8.5 trillion in revenue into the federation account as of mid-September.

Recall that one of the main reasons the government removed subsidy from petrol is inadequate revenue to run the affairs of the country.

Adedeji said: “We are in a revenue crisis, government revenue is low amid a huge public debt. Last year, 96 per cent of government revenue went into debt servicing.

“Where debt has grown bigger than the Gross Domestic Product, GDP, and debt servicing faster than revenue, immediate actions have to be taken to remedy the situation.”

On his agenda to optimise revenue generation, he said: “In this direction, therefore, we will key into the reforms being made by President Bola Tinubu who has since inaugurated a Presidential Fiscal Policy and Tax Reforms Committee.

“The mandate of the committee is to, among other things, evolve an effective design and implementation of fiscal policy and tax reforms for economic prosperity.

“At FIRS, we will embrace efforts being made to design a tidy fiscal landscape for the country and in the process, address some of the obstacles impeding effective operations of the service as the primary agency of government responsible for administration, assessment, collection, accounting as well as enforcement of taxes and levies.

“We need to innovate and build our operations on foolproof technology, while also evolving a hub of fresh ideas and creativity. “

The new tax-master pledged to eliminate leakages in the system, with a view to raking in all tax revenues into government coffers.

“We must definitely plug leakages. We need to strengthen our internal processes and control mechanisms. We must put a high premium on effective coordination of assigned tasks and delegated responsibilities,’’ he added.

Adedeji said he will stimulate voluntary compliance among taxpayers to fulfil their obligations as, according to him, his team will engage stakeholders and sensitise them on the need for voluntary compliance.

His words: “Under me, we will not force things down the throats of our stakeholders. I will always be ready to engage with them, work with and through them, to jointly build a tax administration that we will all be proud of and one that enjoys the trust and confidence of all.

“Broadly, we intend to come up with a menu of strategies that will stimulate voluntary payment of taxes and levies.

“Yes, this is achievable because Nigerians acknowledge the need for the government to increase its revenue to be able to meet its obligations to them.

“In doing this, we will build a tax system that is smart and modern, one with unquestionable integrity and will earn the trust as well as admiration of stakeholders.”

Dr. Adedeji charged management and staff to “work with uncompromising integrity, uphold taxpayers’ confidentiality, and demonstrate a high level of professionalism, fairness and show exemplary public service.”

N8.5 trn already collected this year — Nami

In his remarks, the outgone chairman of FIRS, Muhammad Nami, disclosed, however, that the agency was on its way to setting a new revenue record in 2023, having collected N8.5 as at September 14.

He added that within the period under review, his administration assessed, and recovered another N4 trillion from the Nigerian National Petroleum Company Limited, NNPCL.

Nami said he had surpassed his 10 per cent Tax-to-GDP target of four years, having achieved 10.86 per cent in two years.

He said the 18 per cent target in four years, set by the current administration was not only achievable but could be surpassed.

In 2022, the FIRS set a revenue target of N10 trillion and collected N10.1 trillion within the period. Similarly, in 2023, it set a target of N12 trillion in revenue and has collected N8.5 trillion, with about four months to the end of the year.

(Source)

The President has directed Mr. Muhammad Nami, the erstwhile FIRS Chairman, to proceed on 3 months of pre-retirement leave, as provisioned by Public Service Rule (PSR) 120243, with immediate effect, leading to his eventual retirement from service on December 8, 2023.

A state house press statement by Chief Ajuri Ngelale, Special Adviser to the President (Media & Publicity), reads:

“Zacch Adedeji is hereby appointed in acting capacity for a 90-day period before his subsequent confirmation as the substantive Executive Chairman of the Federal Inland Revenue Service for a term of four (4) years in the first instance.

Zacch Adedeji is a first-class graduate in accounting from the Obafemi Awolowo University.

He most recently served the nation as the Special Adviser to the President on Revenue, following meritorious service terms as the Oyo State Commissioner of Finance and as the Executive Secretary / CEO of the National Sugar Development Council (NSDC).

“By these directives of the president, the new appointment takes immediate effect”, Ngalele said.