e-Invoicing in Nigeria: Timeline, Guidelines, Process, and Steps for Implementation

Nigeria is advancing its digital tax reforms with the rollout of a nationwide e-invoicing system led by the Federal Inland Revenue Service (FIRS). Nigeria has joined the growing list of countries adopting e-invoicing to improve tax control and cut down on revenue losses. Since 1 February 2022, all import and export transactions must follow the e-invoice system, as directed by the Central Bank of Nigeria (CBN). The aim is to ensure accurate pricing and reduce under-invoicing. Traders must now register on the CBN portal and get their invoices verified by authorised dealer banks before payment. 

More recently, in April 2025, the Federal Inland Revenue Service (FIRS) announced a new step, moving e- invoicing implementation into local transactions, starting with a pilot phase for large taxpayers. This guide provides a straightforward overview of what is e-invoicing, Nigeria e-invoicing timelines, implementation steps, and the key regulations businesses must follow to stay compliant and avoid penalties.

What is e-Invoicing in Nigeria?

e-invoicing in Nigeria is a digital system introduced by the Federal Inland Revenue Service (FIRS) to standardize, authenticate, and secure invoices for tax reporting. Invoices must be created in XML or PDF/A-3 format and digitally signed using the Elliptic Curve Digital Signature Algorithm (ECDSA). XML invoices must follow the XAdES standard, while PDFs must comply with PAdES. System Integrators must use a cryptographic stamp identifier (CSID) and OAuth 2.0 for secure ERP-to-FIRS communication. All data must meet validation rules, with accurate tax calculations and completed mandatory fields to ensure compliance and prevent fraud.

e-Invoice Implementation Timeline

The e-invoicing implementation in Nigeria follows a well-structured timeline, ensuring smooth adoption across various sectors.

e-Invoicing Process in Nigeria

Nigeria’s e-invoicing process is structured to ensure secure, compliant, and seamless digital invoicing through integration with the Federal Inland Revenue Service (FIRS) system.

• Registration with FIRS: Businesses must register with the FIRS using their Tax Identification Number (TIN) to access the e-invoicing system.
• Access Point and Code Generation: Upon registration, the Access Point Provider generates a unique code for each user on the FIRS platform to identify them within the system.
• ERP Integration: System Integrators configure taxpayers’ ERP systems to match the FIRS e-invoice format specifications and ensure compatibility.
• Data Mapping: All invoice data, such as buyer/seller details, transaction amounts, and VAT, is mapped to FIRS's standard fields using the Universal Business Language (UBL).
• Digital Signature with ECDSA: e-invoices in Nigeria must be digitally signed using the Elliptic Curve Digital Signature Algorithm (ECDSA) and include a Cryptographic Stamp Identifier (CSID) for authenticity.
• Compliance with XAdES and PAdES: XML-based e-invoices in Nigeria must follow XAdES signature standards, while PDF invoices must comply with PAdES for legal and technical validity.
• OAuth 2.0 Authentication: Secure interaction between ERP systems and the FIRS platform is enforced through OAuth 2.0, with a Client ID and Secret Key for authorised access.
• Validation and Submission via APP: Invoices are transmitted securely to FIRS through an Access Point Provider, which validates the format and transmits the data.
• System Monitoring and Troubleshooting: System Integrators continuously monitor submission flow, correct errors, and ensure timely, accurate invoice delivery.
• Cross-Border e-Invoice Registration: Importers/exporters must register on the Central Bank of Nigeria's portal and acquire a digital certificate for invoice authentication.
• Digital Certificate Usage: The CBN-authorised service provider issues a yearly digital certificate that must be used to sign cross-border invoices electronically.

e-Invoicing Compliance Guidelines

To remain compliant with national regulations, Nigerian companies must follow specific e-invoicing rules.

• Invoice Format: All e-invoices must follow the Universal Business Language (UBL) standard in XML or PDF/A-3 format.
• Digital Signature Requirement: Invoices must be digitally signed using the Elliptic Curve Digital Signature Algorithm (ECDSA) and must include a Cryptographic Stamp Identifier (CSID).
• Signature Standards: XML invoices must comply with XAdES, and PDF invoices must comply with PAdES standards to be legally valid.
• Secure Transmission: Businesses must use OAuth 2.0 authentication to securely transmit invoices via an approved Access Point Provider (APP).
• Mandatory Validation: System Integrators must ensure accurate data mapping, complete mandatory fields, and perform validations before submission to FIRS.

Who Needs to Comply with e-Invoicing in Nigeria?

E-invoices are required for all cross-border transactions, unless exempted. 

Who Is Exempt from e-Invoicing?

Not all entities fall under the mandatory requirement. As of 2025, the following exemptions apply:

• Small businesses with a turnover below ₦25 million annually or fewer than 25 employees.
• Diplomatic missions and their personnel.
• Government agencies in Nigeria.
• Import/export invoices under $10,000, unless the business earns over $50,000 annually.
• Specific imports by Nigerian security agencies, diplomatic missions, or UN organisations.

Benefits of e-Invoicing in Nigeria

e-invoicing offers several practical advantages for businesses in Nigeria:

• Speeds up trade processing and customs clearance.
• Cuts down invoice errors and manual paperwork.
• Helps businesses stay within CBN’s pricing rules.
• Reduces fraud by tracking real-time transactions.
• Makes tax reporting easier and more accurate.

How can ClearTax help a business with e-Invoicing in Nigeria?

ClearTax makes e-invoicing in Nigeria easier for businesses with a complete solution:

• Works with your systems: Easily connects with your existing billing or POS setup to send invoices in the right format.
• Checks before you send: Catches errors early, so your invoice meets CBN rules before submission.
• Keeps your invoices safe: Safely stores e-invoices for easy access and audit readiness.
• Helps you stay on track: Sends reminders so you don’t miss deadlines or make mistakes.
• Supports digital signing: Helps businesses handle CBN-approved certificates for signing your e-invoices.

Conclusion

In Nigeria, e-invoicing is mandatory for imports and exports. Businesses must generate invoices in a structured XML format, validate them against global price benchmarks, and submit them through the Central Bank’s Trade Monitoring System. A valid digital certificate, issued by a CBN-approved service provider, is also required to authenticate each invoice. These e-invoices must be securely stored and made available for audits.

From auto-generating invoices in the right format to integrating with ERP systems, managing digital certificates, and ensuring timely submission, ClearTax helps businesses stay compliant without manual errors or missed deadlines.