The Federal Government has inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax (VAT) Modification Order as part of efforts to implement Nigeria’s new tax laws and provide greater clarity for businesses, investors and tax administrators.
The committee was inaugurated by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who tasked members with producing a practical VAT framework that aligns with the objectives of the Tax Reform Acts and addresses the realities of Nigeria’s economy.
In a statement issued on Saturday by the Ministry of Finance’s Head of Information and Public Relations, Efe Ovuakporie, Oyedele described the Tax Reform Acts, which took effect on January 1, 2026, as the most significant overhaul of Nigeria’s tax system in decades.
According to the minister, the reforms are aimed at simplifying tax administration, improving certainty, enhancing Nigeria’s competitiveness, protecting vulnerable citizens and laying a stronger foundation for sustainable economic growth.
Oyedele noted that while the previous VAT Modification Order, issued under the now-repealed VAT Act, had served its purpose, the introduction of the Nigeria Tax Act necessitated a new framework to guide VAT administration.
“This is not about reproducing an old document. It is about developing a VAT Modification Order that is clear, practical and responsive to the needs of a changing economy,” he said.
He directed the committee to review the legal framework, administrative procedures and policy directives governing VAT, with particular attention to the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.
The minister also urged members to consult widely with stakeholders across government, the organised private sector and professional bodies to ensure the final recommendations are practical, balanced and broadly accepted.
The committee is expected to recommend a comprehensive schedule of VAT-exempt and zero-rated goods and services, taking into account revenue implications, social impact, Nigeria’s treaty obligations and regional integration commitments.
It will also prepare a draft VAT Modification Order and, where necessary, propose amendments to the Tax Reform Acts and other relevant legislation.
Oyedele stressed that the recommendations should remain consistent with the intent of the new tax laws while supporting industrialisation, attracting investment, boosting exports, strengthening food security, promoting innovation and advancing Nigeria’s energy transition.
The committee has been given six weeks to submit its report, which will include implementation guidelines, schedules of VAT-exempt and zero-rated supplies with corresponding Harmonised System (HS) codes, a stakeholder consultation report and recommendations for legislative amendments.
Expressing confidence in the committee, which comprises representatives from key government agencies and the private sector, the minister said its work would enhance the ease of doing business and strengthen investor confidence.
“Nigerians cannot wait. 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,” Oyedele said.
