The Federal Government of Nigeria has officially begun the rollout of a National Electronic Fiscal Device (e-Fiscal) system aimed at transforming the country's tax administration. This strategic move is expected to reduce tax evasion, increase efficiency, and promote transparency in revenue collection.
The new e-fiscal system, which aligns with global standards, will digitize tax operations, allowing real-time monitoring of transactions. Businesses across the country will be required to integrate electronic invoicing systems that automatically report data to tax authorities, closing long-standing gaps in Nigeria’s tax net.
According to officials from the Federal Inland Revenue Service (FIRS), the initiative will help track VAT payments, income taxes, and other levies more accurately, thereby increasing the government’s revenue base without necessarily introducing new taxes.
By leveraging technology, the federal government aims to reduce human interference and loopholes in the collection process. This reform is part of a broader digital transformation agenda to ensure that tax obligations are met fairly and efficiently.
Speaking on the rollout, a senior FIRS official said the e-fiscal system would improve compliance rates and help eliminate manual invoicing practices that are often manipulated or underreported. Businesses that fail to comply may face penalties under the new enforcement regime.
Experts in public finance and governance have applauded the initiative, stating it represents a major leap toward a more transparent and accountable revenue framework. They believe this system will increase investor confidence and contribute to sustainable economic development.
However, stakeholders have urged the government to engage small and medium-scale enterprises (SMEs) through sensitization campaigns to ensure smooth adoption. Many SMEs may lack the technical infrastructure or knowledge to adapt quickly to the new digital demands.
The e-fiscal rollout reflects Nigeria’s ongoing commitment to reforming its fiscal systems and improving public sector governance. As implementation begins, all eyes will be on the government’s ability to enforce the system nationwide and ensure that no sector is left behind.
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