Federal Government Announces Updated Timeline for Tax Law Enforcement, Aims for Full Implementation by 2028
The Federal Government has revealed a revised schedule for the enforcement of Nigeria's new tax regulations, with complete compliance anticipated to commence by late 2026 or early 2027, and a comprehensive transition across all sectors projected for January 2028. This announcement was made by the Nigerian Revenue Service (NRS) during an e-Invoicing Compliance Workshop held on February 18, 2026, in partnership with E-Transact.
Structured Three-Phase Rollout Plan Precedes Enforcement
According to officials, enforcement will be preceded by extensive stakeholder engagement and pilot testing to facilitate a smooth transition for businesses. Mohammed Bawa, Project Manager for e-Invoicing Implementation at the NRS, detailed that the agency will initiate a structured engagement phase before activating compliance measures. The plan involves a three-month secondary engagement in the first quarter to educate taxpayers on non-compliance implications, followed by a three-month pilot programme to test systems and resolve operational issues. Full enforcement is expected only after these phases, with a target date of late 2026 or January 2027.
Medium-Sized Companies to Lead Initial Adoption in 2026
A newly issued public notice specifies that medium-sized taxpayers with annual turnovers between N1 billion and N5 billion will be the first to adopt the new e-invoicing system starting in 2026. This targeted approach aims to streamline implementation, allowing the NRS to refine infrastructure and processes before expanding to other categories. The rollout will be phased to enable efficient scaling and address any emerging challenges.
Infrastructure Upgrades and Digital Tools to Support Transition
To aid the transition, the NRS has upgraded its infrastructure and introduced multiple engagement channels for taxpayers. New tools include a simulation portal for businesses to practice generating and transmitting electronic invoices before going live, and an engagement portal for scheduling consultations and receiving compliance guidance. Additional servers have been procured to enhance connectivity and data storage capacity, minimizing system disruptions as more businesses integrate. The NRS emphasizes that engagement will remain ongoing, with improvements based on taxpayer feedback.
Digital Push Aims to Eliminate Manual Processes and Enhance Transparency
At the workshop, Abubakar Achimogo, Executive Director of E-Transact, stated that the reform's broader goal is to digitize tax collections and eliminate manual processes. The new system is designed to simplify payments, increase transparency, and protect taxpayers from multiple or duplicate charges. Under the digital platform, taxpayers will receive instant notifications detailing payments, creating a documented and traceable process. Achimogo noted that the platform is user-friendly across literacy levels and accessible through various application channels, making compliance easier nationwide.
Implications for Businesses and Long-Term Goals
With enforcement tied to a phased timeline, businesses have a limited window to align their systems with the new requirements. The government's message is clear: engagement and support will precede enforcement, but compliance will eventually be mandatory. Companies within the N1 billion to N5 billion turnover bracket are urged to begin preparations immediately. By 2028, Nigeria aims to complete the transition to a fully digital tax compliance framework, representing one of the most significant overhauls of the country's tax administration system in recent years.
