The Federal Government has inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax (VAT) Modification Order as part of efforts to ensure the effective implementation of Nigeria’s new tax laws and provide greater certainty for businesses, investors and tax administrators.
The committee was inaugurated by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who charged members to deliver a practical VAT framework that reflects the objectives of the Tax Reform Acts and responds to the realities of Nigeria’s economy.
According to a statement issued on Saturday by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie, Oyedele said the Tax Reform Acts, which came into effect on January 1, 2026, represent 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.
Oyedele explained that while the previous VAT Modification Order, made under the repealed VAT Act, had served its purpose, the new legal framework requires a fresh order to support the implementation of the Nigeria Tax Act.
“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.
The minister said the committee would review 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.
He also directed members to engage stakeholders across government, the organised private sector and professional bodies to ensure the final recommendations are practical and balanced.
The committee is expected 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.
It will also prepare a draft VAT Modification Order and, where necessary, recommend amendments to the Tax Reform Acts and other enabling laws.
Oyedele urged members to ensure their recommendations remain faithful to both the letter and spirit of the new tax laws, adding that the framework should encourage industrial growth, support investment, promote exports, strengthen food security, foster innovation and facilitate Nigeria’s energy transition.
The committee has six weeks to submit its report, including implementation notes, schedules of VAT-exempt and zero-rated supplies with corresponding harmonised system codes, a stakeholder consultation report and recommendations on legislative amendments.
Expressing confidence in the committee, whose membership includes representatives of key government agencies and the private sector, Oyedele said its work would improve 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,” the finance minister said.
