Proforma Invoice in Nigeria: When and How to Use It

A proforma invoice is a document you send before the final sale or service is completed. It tells the customer what you expect to supply and what it is expected to cost. Nigerian suppliers often use one when a customer needs an approval document before releasing a purchase order, deposit or payment.

It looks similar to an invoice, but it is not a final demand for payment and it should not replace the completed sales invoice or receipt.

When to issue a proforma invoice

Use one when the final quantity, delivery date or payment approval is still being confirmed. It is useful for quotations that need a formal layout, custom orders, imported goods, deposits and corporate procurement.

For example, a supplier can send a proforma for 20 office chairs at ₦85,000 each, including delivery. Once the customer approves and the goods are supplied, the supplier issues the final invoice with its own invoice number.

What to include

Include the supplier and customer names, a proforma number, date, item description, estimated quantity, prices, delivery terms and payment terms. Put Proforma Invoice clearly at the top. State how long the prices are valid for, such as seven or 14 days.

If VAT may apply, make the treatment clear. Do not call a proforma a tax invoice simply because it includes a tax estimate. Confirm the correct invoice treatment before the sale is completed.

Proforma invoice, quotation and final invoice

A quotation is an offer. A proforma is a detailed preliminary bill, commonly used to support approval and payment preparation. A final invoice records the actual supply and amount due. The documents can contain similar information, but they serve different stages of the transaction.

Do not reuse the proforma number as your final invoice number. Use a separate numbering series such as PF-2026-014 for proformas and INV-2026-114 for invoices. Our invoice number format guide explains why this keeps records clean.

Converting a proforma to an invoice

Once the customer confirms the order, check the actual quantity, price, delivery cost and tax treatment. Then create the final invoice using the completed facts. Include the customer’s LPO or purchase order reference where relevant. The LPO versus invoice guide explains how the documents work together.

If the customer paid a deposit from the proforma, show it against the final invoice and issue a receipt for money received. Do not make the customer guess whether the balance is after the deposit.

Create a professional document

Use InvoiceGenerator.ng to create a clear document, then save the final invoice and receipt alongside the quotation or proforma. If you need to calculate a VAT line, check it first using the Nigeria VAT calculator.

Common mistakes

Do not treat a proforma as proof that payment has been made. Do not leave the price-validity date out, and do not promise stock or delivery dates you have not confirmed. A clear proforma helps the customer approve the purchase. A clear final invoice helps you get paid.