Nigeria’s effort to modernise its tax system is entering a new phase as businesses across the country prepare to adopt a mandatory electronic invoicing system designed to improve tax reporting and reduce revenue leakages.
The new framework, introduced by the Nigeria Revenue Service, is part of broader reforms aimed at strengthening tax collection, improving transparency, and expanding government revenue outside the oil sector.
Under the new system, companies will now be required to issue and transmit invoices digitally in real time. This means businesses must upgrade their accounting and invoicing systems to comply with the government’s new reporting standards.
The rollout will happen in phases.
Large companies with annual turnover above ₦5 billion will be the first to migrate to the platform. Medium-sized firms earning between ₦1 billion and ₦5 billion will follow afterward, while smaller businesses with less than ₦1 billion turnover will join at a later stage.
The policy is expected to significantly change how businesses manage transactions, record sales, and communicate with tax authorities. Real-time invoice validation and secure transmission will become compulsory once the framework is fully operational.
As part of the implementation process, the Nigeria Revenue Service has approved Upperlink Limited as one of the official system integrators for the national e-invoicing platform. The company will help businesses connect their systems to the government’s Merchant Buyer Solution framework.
This approval allows organisations using Upperlink’s services to integrate their invoicing systems for instant invoice generation, validation, and transmission in line with the new compliance rules.
The move reflects the growing use of digital technology by tax authorities to improve monitoring and close loopholes in revenue collection. Governments around the world are increasingly relying on digital platforms to track business transactions and ensure proper tax compliance, and Nigeria is now accelerating in the same direction.
Speaking on the development, the Managing Director of Upperlink Limited, Olusegun Akano, said the company’s selection as a system integrator was based on its experience in payment systems and enterprise technology solutions.
According to him, the company has previously developed digital platforms for businesses, government agencies, and financial institutions. He also noted that Upperlink operates as a Central Bank of Nigeria-licensed Payment Solution Service Provider and serves as an aggregator to the Nigeria Inter-Bank Settlement System.
Akano explained that the company’s infrastructure is capable of supporting the large-scale invoicing, reconciliation, and compliance operations required under the new e-invoicing policy.
He added that the firm had previously participated in major public sector technology projects, including the AGILE Project, a Federal Government programme supported by the World Bank.
Also commenting on the policy, the Chief Marketing Officer of Upperlink Limited, Opeyemi Oni, described the new system as a major shift in Nigeria’s tax administration.
According to Oni, many businesses will now need to review and upgrade their current invoicing processes to meet the government’s digital compliance standards.
While the initiative is expected to improve tax transparency and increase government revenue, it may also raise operational costs for businesses adjusting to the new technology requirements.
The framework, however, includes support options for companies with existing enterprise software systems, as well as businesses that may require middleware or portal-based solutions to meet the new compliance obligations.
