FIRS e-Invoice and the Merchant Buyer Solution (MBS)
How Nigeria is moving from PDF invoices to a real-time clearance model run by FIRS — pilot 2024, large taxpayers first, AfCFTA on the horizon.
The Federal Inland Revenue Service (FIRS) is the federal tax authority in Nigeria, established by the FIRS (Establishment) Act 2007. From 2024, FIRS began piloting an e-Invoicing platform called the Merchant Buyer Solution (MBS), designed as a clearance-style B2B exchange where each invoice is registered with FIRS and assigned a unique identifier before delivery to the buyer. The mandate is being phased in, starting with large taxpayers (annual turnover above NGN 5 billion) and expanding progressively to medium and small taxpayers in line with the Tax Administration Reform Bill 2024. For exporters and AfCFTA-aligned businesses, MBS will become the canonical record of cross-border B2B invoicing originating in Nigeria.
- FIRS: federal tax authority, headquartered in Abuja, established by FIRS Act 2007.
- MBS (Merchant Buyer Solution): FIRS-run clearance platform for B2B e-invoices.
- Pilot launched 2024: large taxpayers above NGN 5bn turnover go first.
- Tax Administration Reform Bill 2024: legal backbone for staged rollout.
How it works
Register your business with FIRS and obtain a Taxpayer Identification Number (TIN). Without a valid TIN issued through the Joint Tax Board (JTB) unified system, your business cannot enrol on the FIRS MBS portal or transmit invoices through the clearance channel — TIN is the primary identifier for both seller and buyer in every MBS message.
Enrol on the FIRS MBS portal and obtain API credentials. Each onboarded taxpayer receives a client ID and a digital certificate used to sign outbound invoice payloads. Invoicing software connects to MBS through a REST API documented by FIRS, with sandbox and production environments separated for testing before go-live.
For every B2B invoice, post the structured payload (header, lines, VAT breakdown, buyer TIN) to MBS before delivery to the buyer. FIRS validates the message in near real time and returns either a clearance confirmation with a unique Invoice Reference Number (IRN) or a rejection with error codes — only cleared invoices may be sent to the buyer as legally valid e-invoices.
Deliver the cleared invoice (PDF and/or structured copy with the IRN and QR code) to the buyer through the channel of your choice — email, portal or API. The IRN is the cryptographic proof that the invoice was registered with FIRS and serves as the record of input VAT for the buyer when filing returns.
File monthly VAT returns and Companies Income Tax returns via the FIRS TaxPro-Max portal. Cleared MBS invoices are pre-populated in your VAT return, reducing reconciliation effort and aligning with the AfCFTA digital trade protocol for cross-border B2B documentation.
Legal framework
- Federal Inland Revenue Service (Establishment) Act 2007.
- Tax Administration Reform Bill 2024 (legal basis for MBS rollout).
- Value Added Tax Act Cap V1 LFN 2004 (as amended by Finance Acts 2019-2024).
- AfCFTA Protocol on Trade in Goods — Annex on Customs Cooperation.
Frequently asked questions
Is FIRS MBS mandatory for every Nigerian business?
Not yet — the rollout is phased. The 2024 pilot covers large taxpayers with annual turnover above NGN 5 billion. Medium taxpayers (NGN 25m to 5bn) follow in a later wave, and small taxpayers below NGN 25m turnover are expected last. The Tax Administration Reform Bill 2024 sets the legal mandate, with FIRS publishing the exact dates per cohort. Voluntary onboarding is open to any taxpayer.
What is the difference between TaxPro-Max and MBS?
TaxPro-Max is the FIRS portal used to file VAT, Companies Income Tax, PAYE and other returns — it has been live since 2021. MBS is a separate, newer platform launched in 2024 specifically for real-time clearance of B2B invoices before they are delivered to the buyer. Once MBS is fully mandatory, cleared invoices will feed into TaxPro-Max automatically so the VAT return is pre-filled.
Does MBS apply to B2C retail sales?
Not in the current pilot — MBS is B2B-first because buyer TINs are required to validate the clearance. Retail B2C will rely on point-of-sale tax invoices and a separate FIRS retail reporting track once the B2B rollout stabilises. Hotel, restaurant and consumer-facing businesses should still log VAT through TaxPro-Max but are not required to use MBS for over-the-counter sales today.
How long must I retain invoices in Nigeria?
Six years from the end of the relevant tax year, per Section 55 of the Companies Income Tax Act and Section 28 of the VAT Act. The retained copy must include all the data that was on the MBS message (IRN, QR code, full line items, VAT breakdown). 4invoices stores cleared invoices with the FIRS IRN and signed XML for the statutory retention window automatically.
Will Nigeria join Peppol or align with EU ViDA?
Not directly — Nigeria has chosen a clearance model closer to Italy's SDI or Turkey's GİB rather than the decentralised Peppol four-corner model. For exporters dealing with EU buyers under ViDA from 2028, you will need to issue both an MBS-cleared invoice for Nigeria and an EN16931 UBL invoice for the EU customer. Software platforms with dual-format output (such as 4invoices) handle this in one workflow.