Kenyan e-invoicing startup DigiTax has secured formal approval from Nigeria’s Federal Inland Revenue Service (FIRS) as both an Access Point Provider and System Integrator. This designation allows DigiTax to connect Nigerian businesses directly to the country’s national e-invoicing platform under the Electronic Fiscal System (EFS). The move marks a major step in DigiTax’s West African expansion and aligns with Nigeria’s broader push to enforce digital tax compliance among large corporations.
Positioning as a Continental Compliance Partner
With its entry into Nigeria, DigiTax now operates in three countries, including its home base in Kenya and Zambia. The company is positioning itself as a cross-border partner for tax compliance, focusing on markets where tax authorities are embracing real-time digital invoicing systems. Nigeria, now DigiTax’s second-largest market by taxpayer base, joins Kenya and Zambia in the startup’s strategic network across sub-Saharan Africa.
Strengthening Compliance Infrastructure in Nigeria
DigiTax’s approval comes as Nigeria rolls out its national e-invoicing mandate, which took effect on August 1, 2025, following a pilot phase that began in late 2024. Under the new regulation, companies generating $3.3 million or more in annual revenue must integrate with FIRS's e-invoicing system and transmit invoices in real time. DigiTax’s software supports these requirements with built-in features such as real-time invoice validation, ERP integrations, and workflows tailored for both B2B and B2C operations.
Proven Experience in Digital Tax Environments
The company has a solid track record in high-compliance markets like Kenya, where it integrates directly with the Kenya Revenue Authority’s eTIMS platform. In Zambia, DigiTax supports businesses using the Smart Invoice system, a legally mandated tool for VAT-registered entities. This experience has made DigiTax an attractive option for governments and enterprises seeking streamlined compliance with emerging tax technologies.
Serving a Broad Spectrum of Businesses
To date, DigiTax claims to serve over 800 businesses across sectors including retail, manufacturing, pharmaceuticals, and professional services. Its platform integrates with popular business tools such as QuickBooks, Zoho, Sage, and Odoo, simplifying onboarding and use for enterprises of varying sizes. While its core clientele comprises large firms—defined in Kenya as those earning at least $1.2 million annually—the company also accommodates smaller businesses seeking to modernize their tax operations.
Revenue Model and Operational Scale
DigiTax monetizes through annual software subscriptions, per-transaction fees, and integration services. This revenue model provides flexibility and scalability as the company expands into new regulatory environments. Backed by Equitable Ventures, Higa VC, and several angel investors, DigiTax currently employs 25 staff members across engineering, tax advisory, and customer support roles.
Strategic Market Selection Drives Growth
The startup’s expansion strategy focuses on regions where digital invoicing infrastructure is either active or imminent, and where multinational or regional client bases already exist. This approach has enabled DigiTax to grow responsibly while supporting governments' efforts to digitize tax collection. The approval by FIRS not only validates DigiTax’s compliance readiness but also enhances its credibility with large enterprises adapting to new Nigerian tax rules.
DigiTax’s official entry into Nigeria marks a significant step toward its goal of becoming a pan-African e-invoicing leader. With proven systems in place and deep expertise in tax technology, the company is well-positioned to help Nigerian businesses navigate the country’s digital fiscal transformation. As more African nations adopt real-time e-invoicing policies, DigiTax stands ready to offer scalable, compliant solutions tailored for a rapidly evolving regulatory landscape.