The Federal Internal Revenue Service has revealed that the adoption of e-invoicing could boost access to credit for manufacturers in the country.
The body made this observation at the end of the last stakeholders’ engagement done in Lagos with manufacturers.
The FIRS has been engaging stakeholders from different segments of the economy ahead of the launch of Nigeria’s National E-Invoicing System on July 25.
During his presentation to manufacturers, the lead consultant on the invoicing project, Mr Sadiq Arogundade, highlighted the importance of invoices in business transactions and how they can ease access to credit.
He said, “That is very important for every country that has survived today in this global economic crisis; credit is a factor. Without credit, you are not going anywhere in the country. So, this is a journey towards a credit economy.
Arogundade continued, “So, you don’t need to first have the money for you to be able to continue to do that trade. You can get other people’s money to do the business.
So, you can raise an invoice, get the FIRS integrity on it, and then put it into the money market for factoring.”
He maintained that “Invoices represent trust, commitment, and value. We are not just talking about taxes or taxation but about technology and the global competitiveness of your business. The MBS will enable businesses to create standard and payable invoices that can be used for both in-country and cross-border transactions, using the Universal Business Language format.”
He said that the e-invoicing will fix challenges with payments, delayed payments, errors, and compliance issues.
“We have built a product that will help to automate tax compliance and improve efficiency. The e-invoicing system will also provide real-time data on tax compliance, which will enable the FIRS to make informed decisions and improve tax administration,” Arogundade explained.
Also, the Acting Director of Tax Automation at FIRS, Mike Adoga, assured operators in the manufacturing sector of data confidentiality under the e-invoicing initiative.
Adoga said the tax agency is fully guided by the Nigeria Data Protection Act and has instituted measures to ensure that all data shared for tax purposes remains confidential and secure.
“I want you to rest assured that we are guided by the Nigerian Data Protection Act and that all data that is passed for tax purposes remains confidential,” he said.
