The Federal Inland Revenue Service (FIRS) has announced that the adoption of e-invoicing could significantly enhance access to credit for manufacturers across Nigeria. This was disclosed during the agency’s recent stakeholders’ engagement with manufacturers in Lagos, held in preparation for the official launch of the National E-Invoicing System on July 25.
Addressing participants at the session, Mr. Sadiq Arogundade, the lead consultant on the e-invoicing project, emphasized the transformative role of digital invoicing in fostering a credit-based economy.
“Invoices are a vital part of business transactions. That is very important for every country that has survived today in this global economic crisis—credit is a factor,” Arogundade said. “Without credit, you are not going anywhere in the country. So, this is a journey towards a credit economy.”
According to Arogundade, once businesses raise an invoice under the e-invoicing system and receive FIRS authentication, these invoices can be presented in the money market for factoring, enabling businesses to access credit without needing upfront capital.
“You don’t need to first have the money for you to be able to continue to do that trade,” he added. “You can get other people’s money to do the business.”
The FIRS has been actively engaging stakeholders across various sectors to ensure a smooth rollout of the digital invoicing platform, which is expected to enhance transparency, reduce tax evasion, and promote financial inclusion.
