FIRS assures stakeholders of data privacy, says e-invoicing project backed by CBN, NITDA

The Federal Inland Revenue Service (FIRS) has assured stakeholders of data confidentiality under the electronic invoicing (e-invoicing) initiative.

Mike Adoga, the acting director of tax automation at FIRS, gave the assurance on Tuesday during a stakeholder engagement session with players in the manufacturing sector in Lagos.

Adoga said the tax agency is fully guided by the Nigeria Data Protection Act (NDPA) and has instituted measures to ensure that all data shared for tax purposes remains confidential and secure.

“I want you to be 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.

Adoga said while access point providers are responsible for transmitting invoices within the e-invoicing ecosystem, the FIRS is not working alone.

He clarified that the e-invoicing initiative is not solely driven by FIRS, but is a federal government project coordinated by a steering committee.

“In fact, NITDA, that is the Nigerian Information Technology Development Agency, that is responsible for regulating all such players in the Nigerian technology space, is the one responsible,” he said.

“This e-invoicing project is a federal government project and a whole lot of agencies, the CBN, NITDA, ministry of finance, and so many agencies are involved.

“As a matter of fact, we have a steering committee that consists of all these agencies, and everybody is playing their role.

“However, FIRS is the agency driving it because it has to sit somewhere and be driven. It is not an FIRS initiative. It is an initiative of the federal government of Nigeria, and all these agencies are involved.”

‘DATA WILL BE SAFE WITHIN ECOSYSTEM’

The acting director said the NITDA has published a clear set of technical and regulatory specifications for any entity that wishes to become an access point provider.

“To become an access point provider, there are certain criteria that must be met and one of those is compliance with the Nigerian Data Protection Act,” Adoga said.

“Data, as far as we are concerned, is going to be safe within the ecosystem because we have laid out requirements that will ensure compliance with the necessary regulations. The necessary ISO certifications in terms of data protection have to be in place before an access point provider is approved to perform such services.”

In September 2024, the FIRS announced that it would introduce an e-invoice to improve the tax system in Nigeria.

The e-invoicing project aims to automate tax processes and improve transaction visibility between merchants and buyers.

The FIRS, on Monday, said the e-invoicing system is completely ready and will be launched on July 25, 2025.