E-invoicing in Nigeria isn’t about company size; it’s about who’s actually in scope.
There is a persistent misconception that Nigeria’s e-invoicing mandate is designed only for large organisations, particularly companies with an annual turnover of ₦5 billion and above. While large taxpayers were the first group required to comply, the scope of the National Revenue Service (NRS) e-invoicing framework is far broader and intentionally inclusive.
Under the NRS e-invoicing programme, any VAT-registered business that issues taxable invoices is within scope, regardless of size, sector, or transaction volume. The phased rollout reflects implementation sequencing, not exemption.
Large Taxpayers Were First, Not the Only Ones
Organisations with annual turnover of ₦5 billion and above were prioritised in the initial phase of implementation, largely due to their transaction volumes and the complexity of integrating enterprise accounting and ERP systems.
However, this early focus has often been misunderstood as a permanent threshold. In reality, the NRS has made it clear that e-invoicing is a national standard, not a large-enterprise privilege. While no new official compliance dates have been announced since the initial phase, the direction of policy remains clear: e-invoicing is intended to scale across the wider VAT-registered ecosystem.
What About Medium and Small Businesses?
Although a formal rollout timeline for SMEs has not yet been publicly announced, medium and small VAT-registered businesses are firmly within the scope of the framework.
This means:
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A small business with modest turnover but registered for VAT is not excluded
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Obligation is determined by VAT registration, not valuation, headcount, or invoice volume
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Businesses issuing taxable supplies, even with simple or low-volume invoices, are included
In practical terms, a neighbourhood distributor, professional services firm, or growing SME issuing VAT invoices is just as relevant to the e-invoicing framework as a multinational corporation.
Can SMEs Start E-Invoicing Before a Mandated Date?
Yes, and doing so is often advantageous.
While SMEs await formal timelines, they can already begin e-invoicing transmission and processing using NRS-aligned tools or approved service providers. Early adoption offers clear benefits: improved record-keeping, cleaner VAT reporting, reduced compliance risk, and smoother transition once enforcement timelines are announced.
From a regulatory standpoint, early adopters are proactive, not premature.
Designed With Small Businesses in Mind
The NRS e-invoicing framework supports varying levels of operational maturity. Businesses can:
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Use simple web-based tools without full system integration
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Connect through approved service providers instead of building complex infrastructure
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Issue compliant invoices validated in real time and assigned a unique Invoice Reference Number (IRN)
This flexibility ensures that e-invoicing is not limited to companies with advanced finance teams or enterprise software.
Who Is Not Immediately Required to Apply?
Businesses that are not VAT-registered are generally not required to adopt e-invoicing at this stage. However, early adoption is encouraged, as electronic invoicing improves transparency, audit readiness, and long-term compliance posture.
Non-resident companies making taxable supplies in Nigeria are also expected to be covered in later phases, further extending the reach of the framework.
Beyond Compliance: Building E-Invoicing the Right Way
E-invoicing goes beyond ticking regulatory boxes. It requires secure integration, reliable systems, and scalability, areas where Heirs Technologies brings proven expertise. By embedding e-invoicing into broader digital and financial ecosystems, we help businesses stay compliant without sacrificing efficiency, while building confidence through secure, future-ready systems.
The reality is clear: if you are VAT-registered and issue taxable invoices, e-invoicing applies to you, now or soon.
Schedule a demo to see how it works.