Truth Radar Times

June 22, 2026 05:55am

By Yakaru Lawan Kachallah

Nigeria is preparing for a major transformation in its tax administration system as the enforcement of electronic invoicing (e-invoicing) begins on July 1, 2026. According to the Country Director of DigiTax Nigeria, Olumide Akinsola, the new regime is expected to improve tax compliance, boost government revenue and increase transparency in business transactions.

Akinsola described the reform as one of the most significant changes to Nigeria’s fiscal system in decades. He noted that Nigeria’s tax-to-GDP ratio is currently about 8.2 per cent, far below the African average of 16 per cent, while the government is targeting an 18 per cent ratio. He explained that the Nigeria Revenue Service (NRS) will implement a Continuous Transaction Controls system, under which every invoice must be validated before reaching buyers, giving tax authorities real-time access to commercial transactions.

Although the system is expected to strengthen tax collection, many companies are yet to comply. The NRS estimates that around 5,000 large taxpayers fall under the scheme, but only about 1,000 had completed integration by early 2026. Akinsola warned that companies that fail to transmit VAT-related invoices through the NRS platform after July 1 risk penalties, including a ₦200,000 fine per infraction, a 100 per cent surcharge on unpaid tax and additional interest charges.

He attributed the slow pace of compliance to outdated processes and inadequate readiness. Many firms still rely on PDF invoices and manual reconciliation systems, whereas the new framework requires structured digital data and real-time validation. Businesses that commenced integration early, he said, are already experiencing smoother VAT processes and improved record keeping.

According to him, non-compliance could also affect business relationships, as buyers may be unable to claim VAT input credits on unvalidated invoices. He added that although compliance requires investment in technology and staff training, the costs are lower than the financial consequences of violating the regulations.

Akinsola argued that e-invoicing would not only improve efficiency but also reduce audit disputes, enhance cash-flow management and strengthen tax administration. He explained that the system creates a continuous and verifiable data trail, making tax evasion and under-reporting more difficult.

He further expressed confidence that the policy would significantly increase government revenue by bringing previously unrecorded economic activities into the tax net. Drawing examples from countries such as Italy, he noted that similar systems have led to improved compliance and higher revenue generation.

Despite concerns over power supply and internet connectivity, Akinsola said the platform has been designed to operate effectively in challenging environments. Features such as cloud-based infrastructure and asynchronous transmission allow invoices to be stored and transmitted once connectivity is restored.

He also revealed that DigiTax has experienced a surge in enquiries from businesses rushing to meet the deadline. According to him, many companies assumed that the implementation date would be postponed, but the NRS has maintained that July 1 remains unchanged.

On the role of DigiTax, Akinsola explained that the platform, developed by Namiri Technology Limited, serves as a bridge between businesses and tax authorities. Operating across Nigeria, Kenya, Zambia and the United Arab Emirates, the company supports more than 1,000 businesses and has processed invoices worth over $15 billion.

He stressed that extending the deadline would weaken confidence in the tax system and undermine the credibility of the government’s reform agenda. Instead, he urged businesses to prioritise compliance to avoid penalties and take advantage of the efficiency gains associated with e-invoicing.