The Nigeria Revenue Service (NRS) has defended its phased rollout of the new Tax Act, saying the strategy is designed to address operational and infrastructure challenges while ensuring a smooth transition to a fully digital tax system.
Speaking at an e-invoicing compliance workshop organised by eTranzact in collaboration with the NRS, the agency’s Project Manager for e-invoicing implementation, Mohammed Bawa, said the first phase deliberately targets large taxpayers.
According to Bawa, focusing on large corporations in the initial stage will help strengthen system integration, resolve bottlenecks, and refine processes before extending the framework to medium and smaller businesses.
Bawa explained that the implementation has been structured into three phases over three years — starting with large taxpayers, followed by medium-sized firms, and eventually smaller entities.
In the last year, we’ve been speaking directly to large taxpayers and organising engagements to ease adoption,” he said.
We know the transition will not be that easy. Our focus is to support taxpayers on how best to comply and how easily they can comply.”
For 2026, the NRS plans to concentrate on medium-sized taxpayers with annual turnovers between ₦1 billion and ₦5 billion.
A three-month stakeholder engagement will precede a pilot phase before full compliance enforcement toward the end of the year and early next year.
Infrastructure and Digital Readiness
To address potential connectivity and data storage concerns, Bawa disclosed that the agency has procured additional servers and strengthened its digital infrastructure.
The NRS is also introducing a simulation portal that will allow taxpayers to test invoice generation and transmission before going live. An engagement portal has equally been created to enable businesses to schedule consultations and resolve compliance questions.
“We don’t expect all taxpayers to comply at the same time,” Bawa noted. “As more join, we’ll continue to improve system capacity and address emerging challenges.”
The agency has accredited multiple service providers, including eTranzact, to assist taxpayers in meeting compliance requirements.
Bawa described e-invoicing as a transformative tool that enhances transparency, reduces errors, speeds up audits and refund processing, and lowers the risk of penalties.
Because everything is captured digitally, audits become lighter and refunds are processed faster,” he said.
Director at eTranzact, Abubakar Achimogo, described the initiative as a significant shift from manual processes to automated tax documentation, assuring stakeholders that the platform is seamless and user-friendly.
This protects the average Nigerian from multiple taxation. The process is automated, transparent, and real-time.
There are no windows for abuse,” Achimogo stated.
Stakeholders at the workshop noted that beyond regulatory compliance, the reform is expected to strengthen revenue mobilisation, improve accountability, and enhance confidence in Nigeria’s tax administration framework.
With the phased implementation now underway, the NRS says continuous stakeholder engagement and infrastructure upgrades will remain central to achieving a fully digital, transparent, and efficient tax ecosystem.
