Nigeria Tax Act 2025:
The Complete Guide
Everything Nigerian businesses need to know about the new digital tax compliance regulations.
Table of Contents
Overview of Changes
The Nigeria Tax Act 2025 represents the most significant overhaul of the nation's tax administration in decades. The primary goal is to close the tax gap by digitizing the entire process of revenue collection.
The key shift is moving from post-transaction reporting to real-time transaction reporting. Businesses can no longer wait until the end of the month to compile records; every invoice must be digitally signed and reported instantly.
Mandatory E-Invoicing
Under Section 13.4 of the new Act, all businesses with an annual turnover exceeding ₦25 million must generate electronic invoices through a FIRS-accredited solution (like CompliantInvoice).
Requirement Checklist:
- Standardized XML Format
- Valid FIRS Digital Signature
- QR Code for customer verification
Key Deadlines
The implementation is being rolled out in phases.
- Jan 01Phase 1: Large Taxpayers Companies with >₦1B turnover must comply immediately.
- Jun 30Phase 2: Medium Taxpayers Companies with >₦25M turnover deadline.
Penalties for Non-Compliance
Failure to issue an e-invoice attracts a penalty of 10% of the invoice value or ₦100,000 (whichever is higher) per infraction. Repeated offenses can lead to the sealing of business premises.
Ready to automate your compliance?
Join over 5,000 Nigerian businesses who sleep better at night knowing their books are perfect.