DigiTax, a fast-growing Kenyan e-invoicing startup, has officially received approval from the Federal Inland Revenue Service (FIRS) as an Access Point Provider and System Integrator in Nigeria. This greenlight enables DigiTax to connect businesses directly to Nigeria’s new electronic invoicing platform—cementing its position as a pan-African leader in real-time tax compliance solutions.
The approval comes as Nigeria prepares for full implementation of its Electronic Fiscal System (EFS) beginning August 1, 2025, targeting large enterprises earning ₦5 billion ($3.3 million) or more annually. FIRS had earlier piloted the system in November 2024, and its expansion reflects growing urgency among African governments to close VAT gaps, reduce tax evasion, and digitize financial reporting.
DigiTax builds software that integrates seamlessly with ERP systems to automate tax-compliant invoicing. In Kenya, the company is deeply embedded in the Kenya Revenue Authority’s eTIMS platform, and in Zambia, it supports Smart Invoice, a mandatory system for VAT-registered taxpayers. With Nigeria now its third market, DigiTax positions itself as a vital regional partner for businesses navigating complex and evolving tax laws.
“This milestone solidifies DigiTax’s position as a trusted partner in helping businesses comply with real-time electronic invoicing mandates across the continent,” the company stated.
Nigeria is DigiTax’s second-largest market by taxpayer base, with projected 2025 tax revenues of $16.8 billion, just behind Kenya’s $19.9 billion. DigiTax’s entry reflects a strategic expansion model focused on jurisdictions enforcing real-time VAT tracking and where its enterprise clients already have regional footprints.
The firm currently supports over 800 businesses spanning retail, pharmaceuticals, manufacturing, and professional services, with integrations to accounting platforms like QuickBooks, Zoho, Odoo, and Sage. In Nigeria, it is offering compliance-ready tools, including real-time invoice validation, ERP/API connectivity, and dedicated onboarding support tailored to the FIRS framework.
DigiTax generates revenue via annual subscriptions, integration fees, and transaction-based pricing. While its core clients are large enterprises (earning $1.2M+ annually), it also serves SMEs adapting to digitized tax environments.
Backed by Equitable Ventures, Higa VC, and notable angel investors, DigiTax operates with a lean 25-person team specializing in tax technology, engineering, and customer support—fueled by the ambition to become Africa’s leading cross-border e-tax compliance engine.
