Taiwo Oyedele, Minister of State for Finance and former chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated during a media event in Lagos that new tax laws could return N3.4 trillion to Nigerian businesses through input VAT credits based on 2024 VAT collections. This amount is not automatically disbursed; it is only accessible through valid e-invoices processed via the Merchant Buyer Solution (MBS) platform. Invoices not pre-cleared on the Nigeria Revenue Service (NRS) platform are deemed invalid, disqualifying buyers from claiming input VAT. There is no partial credit or grace period under the system. A manufacturer purchasing raw materials, energy, or logistics services faces irreversible cash flow loss if suppliers are not on the MBS platform. The validity of an invoice hinges on an Invoice Reference Number from NRS, making supplier compliance a direct factor in VAT recovery. Olumide Akinsola, Country Director at DigiTax, noted that over 1,000 businesses in Kenya have been supported through similar transitions. E-invoicing under the PEPPOL framework, adopted by Nigeria, is permanent and not subject to relaxation. The system is designed to formalise commercial records and close gaps in tax collection. Nigeria's tax-to-GDP ratio stands below 10%, lower than Ghana's 16%, Kenya's 15%, and South Africa's 23%. The government aims to raise it to 18% through digital infrastructure, not rate increases. DigiTax is accredited by NRS as an Access Point Provider and System Integrator.
The minister speaks of N3.4 trillion in refunds, yet businesses will only access it if their suppliers use compliant e-invoicing systems—a dependency rarely acknowledged. A manufacturer relying on non-compliant vendors loses input VAT claims outright, turning tax reform into a hidden procurement risk. Finance and procurement teams not aligned on supplier compliance are already losing recoverable funds. The system does not reward late adoption, and no alternative recovery path exists for excluded transactions.
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