eTranzact International Plc: A Key Player in Nigeria’s Digital Tax Transformation
eTranzact International Plc has solidified its role as a crucial partner in Nigeria’s ongoing digitization of tax processes. Recently certified by the Federal Inland Revenue Service (FIRS) as an authorized provider for the nationwide rollout of e-invoicing, eTranzact’s involvement marks a significant expansion of its collaboration with the FIRS, which initially began with VAT automation under the Tax Administration 2.0 initiative. This certification underscores eTranzact’s proven capability and trustworthiness in delivering technology solutions for government-led initiatives.
The FIRS e-invoicing platform, known as the Merchant Buyer Solution, represents a substantial step towards modernizing tax administration in Nigeria. This platform mandates the use of structured digital invoices across a wide range of transactions, encompassing business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) interactions. By implementing this standardized digital format, the FIRS aims to streamline and simplify tax procedures, promoting greater compliance among businesses and enhancing overall transparency within the Nigerian economy. The move towards e-invoicing is expected to significantly reduce the administrative burden on businesses while strengthening the FIRS’s ability to monitor and collect taxes effectively.
The selection of eTranzact as a certified provider reflects the company’s adherence to stringent criteria set by the FIRS. These requirements, which include nationwide service capacity, proven security measures, neutrality, and scalability, were rigorously assessed with technical input from the National Information Technology Development Agency (NITDA). This meticulous selection process underscores the importance placed on ensuring the reliability, security, and nationwide reach of the e-invoicing platform. The involvement of NITDA further emphasizes the commitment to data protection and cybersecurity, instilling confidence among taxpayers regarding the safety and transparency of the system.
eTranzact’s Managing Director/Chief Executive Officer, Niyi Toluwalope, views the e-invoicing initiative not merely as a compliance measure but as a catalyst for innovation in how businesses interact with the government. He believes that the platform will foster greater transparency, efficiency, and value for all stakeholders involved. This perspective highlights the transformative potential of e-invoicing beyond its immediate tax implications, showcasing its ability to modernize and streamline interactions between businesses and the government. This streamlined interaction is expected to create a more conducive environment for businesses to thrive while also strengthening the government’s ability to administer taxes effectively.
eTranzact’s involvement in the e-invoicing rollout builds upon the company’s extensive experience in supporting national tax automation efforts. In 2017, under the Tax Administration 2.0 framework, eTranzact partnered with the FIRS and major Nigerian banks to implement an API system for secure Value Added Tax (VAT) and Withholding Tax (WHT) reporting through the TaxPro Max platform. This infrastructure established a new benchmark for digital transparency in tax reporting and paved the way for the subsequent Tax Administration 3.0. By leveraging its existing expertise and infrastructure, eTranzact is well-positioned to contribute significantly to the success of the nationwide e-invoicing initiative.
Beyond its contributions to tax automation, eTranzact has demonstrated its versatility in developing technology solutions for various government and institutional needs. In 2024, the company deployed a verification system for the Military Pensions Board, facilitating seamless identity authentication for military pensioners both within Nigeria and abroad. This example further illustrates eTranzact’s capability to develop and deploy secure and efficient technology solutions across diverse sectors, addressing critical needs and improving processes. Through its ongoing partnership with the FIRS and its commitment to developing innovative solutions, eTranzact is playing a pivotal role in driving digital transformation within Nigeria’s government and financial sectors. Their involvement in the e-invoicing rollout promises to significantly enhance the efficiency and transparency of tax administration while further solidifying their position as a leading provider of digital solutions in the country. This collaboration demonstrates the power of public-private partnerships in driving technological advancement and improving governance.
