Nigeria Earns International Recognition for Tax Identification System

Nigeria has marked a major milestone in its digital trade transformation with the international registration of its Tax Identification Number (Tax-ID) and the designation of the Federal Inland Revenue Service (FIRS) as the country’s Peppol Authority.

The development, achieved with support from the Standards Organisation of Nigeria (SON), officially registers Nigeria’s Tax-ID under the ISO/IEC 6523 International Coding System. This recognition enables Nigerian individuals and businesses to participate more effectively in cross-border transactions.

Peppol, a globally accepted framework for the secure and standardised exchange of electronic documents, is already operational across Europe, Asia, and Australia. With FIRS now serving as Nigeria’s Peppol Authority, local businesses can connect seamlessly to this international network—benefiting from faster payments, lower administrative costs, and improved global competitiveness.

According to FIRS, the initiative simplifies taxpayer compliance while boosting investor confidence. “This milestone enables smoother cross-border transactions, reduces compliance challenges, and strengthens Nigeria’s position as a hub for global trade and investment,” the agency stated.

Under the new system, Tax-IDs generated from the National Identification Number (NIN) for individuals and the Corporate Affairs Commission (CAC) numbers for businesses will now be internationally referenceable.

The framework is also expected to reduce duplication, minimise errors, and ease compliance by harmonising Tax-IDs across federal and state levels.

In addition, FIRS has unveiled the Merchant Buyer Solution (MBS) e-invoicing platform. Large taxpayers must adopt the platform by 1 November 2025, with medium and small businesses to follow in phases. Companies are encouraged to validate their Tax-IDs, update accounting systems, and integrate with the platform promptly.

“The launch of MBS marks another leap forward in simplifying tax administration, closing compliance gaps, and aligning Nigeria with international standards in taxation and cross-border trade,” FIRS added.