E-invoicing: Nigerian payment gateways to report all transactions to FIRS for compliance monitoring

The Federal Inland Revenue Service (FIRS) in Nigeria has mandated payment gateways to report all transactions passing through their systems for tax compliance monitoring. This move is part of a major effort to ensure businesses in the country adhere to tax regulations.

Payment gateways are online platforms licensed by the Central Bank of Nigeria (CBN) that allow businesses to securely process electronic payments from customers, including fintech companies like Flutterwave, Paystack, Remita, and Interswitch. The Acting Director of Tax Automation at FIRS, Mike Adoga, emphasized the importance of this new system during a workshop in Lagos.

He stated that the submission of transaction data by payment gateways is crucial to ensure compliance with tax laws and improve transparency in tax administration. The FIRS has also introduced the Merchant Buying Solution (MBS), a digital system aimed at enhancing tax compliance and streamlining the issuance and management of electronic invoices.