Barbara Bako, Abuja.
The Federal Government has inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax (VAT) Modification Order, in a move aimed at facilitating the implementation of Nigeria’s new tax laws and providing greater certainty for businesses, investors and tax administrators.
The committee, inaugurated on Friday by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has been given six weeks to produce a draft VAT Modification Order in line with the Nigeria Tax Act, which took effect on January 1, 2026.
Speaking at the inauguration in Abuja, Oyedele described the Tax Reform Acts as the most significant overhaul of Nigeria’s tax system in decades, saying the reforms were designed to simplify tax administration, improve compliance, enhance competitiveness and support sustainable economic growth.
He said a new VAT Modification Order had become necessary because the previous order was made under the repealed VAT Act and no longer aligns with the country’s new legal framework.
According to the minister, the committee is expected to produce a practical framework that will eliminate ambiguities in VAT administration, make compliance easier for taxpayers, guide tax administrators and support investment decisions.
“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,” Oyedele said.
He directed members to review the legal and administrative framework governing VAT, with particular focus on the exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025, and identify areas requiring further clarification.
The committee was also tasked with engaging stakeholders across government, the organised private sector, professional bodies and other interest groups to ensure the recommendations are practical and balanced.
Oyedele said the panel would 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.
Beyond preparing the new VAT Modification Order, the committee is expected to propose amendments to the Tax Reform Acts and other relevant laws where necessary to strengthen implementation.
The minister urged members to ensure that the new framework supports industrial growth, investment, exports, food security, innovation and Nigeria’s energy transition while safeguarding the integrity of the VAT system.
He also encouraged the committee to draw from international best practices while adapting them to Nigeria’s economic realities and development priorities.
The committee comprises 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.
Expressing confidence in the committee’s composition, Oyedele said its blend of public and private sector expertise would help produce a technically sound instrument to support effective VAT administration under the new tax regime.
“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,” he said.
The committee is expected to submit a draft VAT Modification Order, implementation notes, stakeholder consultation report, schedules of VAT-exempt and zero-rated supplies with their corresponding Harmonised System Codes, as well as recommendations for any legislative amendments considered necessary.
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