Thousands of Nigerian businesses are racing against time as two major tax obligations converge at the end of June, placing unprecedented pressure on finance and accounting teams across the country.
Companies are expected to file their Company Income Tax (CIT) returns while also complying with the Federal Government's new electronic invoicing (e-invoicing) regime, a dual requirement that experts say could expose businesses to filing errors, delays and regulatory penalties if not properly managed.
Critical Compliance Period for Large Companies
Tax professionals warn that the overlap of both deadlines has created a critical compliance period, especially for large companies still adjusting to Nigeria's evolving digital tax environment. The Zaach Adedeji-led Nigerian Revenue Service (NRS) begins enforcement of tax filing by businesses, adding urgency to the situation.
Experts Warn Against Last-Minute Filing
According to Chiazor Victor, Head of Research at FSL Securities, businesses that rush their preparations risk making costly mistakes. "Companies need to ensure that their financial records, invoices and tax computations are consistent. Any mismatch between accounting records and tax submissions could create compliance issues," he said.
Victor noted that organisations must carefully reconcile their accounting records and tax filings to avoid discrepancies that could attract scrutiny from regulators.
New E-Invoicing Rule Raises Stakes
A major source of concern is the Federal Government's new e-invoicing framework, which becomes mandatory for companies with an annual turnover of N5 billion and above by June 30, according to a report by Daily Sun. Under the system, businesses are required to generate and validate invoices through the tax authority's electronic platform, marking a significant shift from traditional invoicing methods.
Industry experts say the requirement goes beyond ordinary tax reporting and could have direct implications for companies' cash flow and operational efficiency. This is because only invoices validated through the platform may qualify businesses to claim Value Added Tax (VAT) input credits. Failure to comply could therefore limit the recovery of eligible VAT expenses and increase operating costs.
Finance Teams Juggling Multiple Tasks
At the same time, businesses are preparing their annual Company Income Tax returns, a process that involves reviewing audited financial statements, reconciling accounts, calculating tax liabilities and ensuring compliance with existing tax laws. Tax consultants say managing both obligations simultaneously requires extensive coordination among finance, accounting and information technology teams.
"The overlap means companies must focus on tax computations, invoice validation, transaction reporting and documentation at the same time," a tax expert involved in the implementation process explained. For many organisations, the transition has required software upgrades, process reviews and staff training to align internal systems with the new digital framework.
Businesses Urged to Prepare Early
Tax advisers have urged affected companies to act swiftly by reviewing accounting systems, updating reporting procedures and carrying out internal compliance checks before filing. Industry stakeholders warn that businesses that delay preparations could face rejected submissions, filing errors and potential sanctions.
Despite the immediate challenges, experts believe the e-invoicing initiative will strengthen transparency, improve tax administration and modernise Nigeria's revenue collection system. For now, however, the focus remains on the approaching June deadline, with businesses urged to treat the period as a crucial compliance window in Nigeria's rapidly evolving digital tax landscape.
Nigeria Releases Key Guidelines for Tax System Overhaul
Legit.ng earlier reported that the federal government has released new guidelines on how Nigeria will move to a new tax system under the Tax Acts 2025, which will begin on January 1, 2026. According to the guidelines released in Abuja on Thursday, June 18, returns for periods ending on or before December 31, 2025, will be handled under the old legislation, while returns due on or after January 1, 2026, will fall under the new regime. The document aims to provide operational guidance to tax authorities, practitioners and taxpayers to navigate issues such as returns submission, payment of tax liabilities, assessments, audits, and investigations, the Sun reports.
