The Federal Government has inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax Modification Order, as part of efforts to ensure the smooth implementation of Nigeria’s new tax laws and provide greater certainty for businesses, investors, taxpayers and tax administrators.
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The committee was inaugurated in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, who charged members to produce a modern, practical and clear VAT framework that reflects the objectives of the Tax Reform Acts and responds to current economic realities.
Oyedele described the Tax Reform Acts, which came into effect on January 1, 2026, as the most extensive changes to Nigeria’s tax system in decades. He said the reforms were designed to simplify tax administration, improve certainty, strengthen competitiveness, protect vulnerable Nigerians and create a stronger foundation for sustainable economic growth.
According to a statement by Efe Ovuakporie, the minister said the previous VAT Modification Order made under the repealed VAT Act had served its purpose, but the new legal framework required a fresh order to provide clarity, update relevant schedules and support the effective implementation of the Nigeria Tax Act.
“This is not about reproducing an old document,” Oyedele said. “It is about developing a VAT Modification Order that is clear, practical and responsive to the needs of a changing economy.”
He said the new order should remove uncertainty, make compliance easier for taxpayers, support investment decisions and give tax administrators clearer guidance in applying the law.
The minister directed the committee to conduct a thorough review of the legal framework, administrative practices and policy directives governing VAT administration, particularly the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025, while identifying areas that require further clarification.
Oyedele also charged the committee to engage widely with stakeholders across government, the organised private sector, professional bodies and other interest groups to validate classifications, address implementation concerns and ensure that the final recommendations are practical and balanced.
He further directed the committee to recommend a comprehensive schedule of VAT-exempt and zero-rated supplies, taking into account revenue implications, social impact, Nigeria’s treaty obligations and regional integration commitments.
The committee is expected to prepare a clear and implementable VAT Modification Order that aligns with the provisions of the Nigeria Tax Act. It is also expected, where necessary, to recommend amendments to the Tax Reform Acts and other enabling laws to strengthen implementation.
Oyedele urged members to ensure that every recommendation remains faithful to both the letter and spirit of the new tax laws. He said the order should encourage industrial growth, support investment, promote exports, strengthen food security, encourage innovation and facilitate Nigeria’s energy transition without compromising the integrity of the VAT system.
The minister also stressed the need to reduce ambiguity in VAT administration so that taxpayers, investors, regulators and tax administrators can operate with greater confidence and certainty.
He encouraged the committee to draw from international experience while ensuring that the final document reflects Nigeria’s unique economic realities and development priorities.
The committee has been given six weeks to complete its assignment and submit a draft VAT Modification Order, schedules of VAT-exempt and zero-rated supplies with their corresponding Harmonised System Codes, implementation notes, a stakeholder consultation report and recommendations on any legislative amendments considered necessary.
Members of the committee include representatives of the Federal Ministry of Finance, Nigeria Revenue Service, Nigeria Customs Service, Federal Ministry of Industry, Trade and Investment, Joint Revenue Board, Manufacturers Association of Nigeria, Tax Advisory Committee, and the Tax Justice and Governance Platform.
Oyedele expressed confidence in the calibre of the committee, saying its blend of public and private sector expertise provides a strong foundation for producing a technically sound and practical instrument that will support effective VAT administration under the new tax regime.
“Nigerians cannot wait,” the minister said. “Businesses need certainty. Investors need confidence. Government needs a VAT system that is easy to administer and supports growth. I urge you to approach this assignment with diligence, objectivity and a sense of urgency.”
He said the committee’s work would shape the administration of one of Nigeria’s most important taxes, improve the ease of doing business, strengthen investor confidence and support the successful implementation of the Federal Government’s fiscal reform agenda.
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