By Abiodun Folarin
WorldStage– The Federal Government of Nigeria 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 Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele who inaugurated the committee in Abuja, charging members to produce a practical and modern VAT framework that aligns with the objectives of the Tax Reform Acts and addresses the realities of the country’s evolving economy.
Oyedele described the Tax Reform Acts, which came into effect on January 1, 2026, as the most significant overhaul of Nigeria’s tax system in decades. According to him, the reforms are designed to simplify tax administration, improve certainty, enhance competitiveness, protect vulnerable citizens and lay a stronger foundation for sustainable economic growth.
He explained that while the previous VAT Modification Order issued under the repealed VAT Act had served its purpose, the new legal framework requires a fresh Order to provide clarity, update relevant schedules and facilitate the implementation of the Nigeria Tax Act.
“This is not about reproducing an old document,” the minister said. “It is about developing a VAT Modification Order that is clear, practical and responsive to the needs of a changing economy.”
Oyedele said the new Order should eliminate ambiguity, ease compliance for taxpayers, support investment decisions and provide tax administrators with clearer guidance in implementing the law.
He tasked the committee with reviewing the legal framework, administrative practices and policy directives governing VAT administration, particularly the VAT exemption and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025, while identifying areas requiring further clarification.
The minister also directed members to engage extensively with stakeholders across government, the organised private sector, professional bodies and other interest groups to validate classifications, address implementation challenges and ensure that the final recommendations are practical and balanced.
According to him, 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.
In addition, the committee will prepare a VAT Modification Order that aligns with the provisions of the Nigeria Tax Act and, where necessary, propose amendments to the Tax Reform Acts and other enabling laws to strengthen implementation.
Oyedele stressed that every recommendation should remain faithful to both the letter and spirit of the new tax laws while promoting industrial growth, encouraging investment and exports, strengthening food security, supporting innovation and facilitating Nigeria’s energy transition without undermining the integrity of the VAT system.
He further urged the committee to draw from global best practices while ensuring that the final document reflects Nigeria’s economic realities and development priorities.
The committee has 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 (HS Codes), implementation notes, a stakeholder consultation report and recommendations on any legislative amendments considered necessary.
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 (MAN), Tax Advisory Committee and the Tax Justice and Governance Platform.
Expressing confidence in the committee’s composition, the minister said the mix of expertise from both the public and private sectors would ensure the development of a technically sound and practical instrument to support 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,” Oyedele said, urging members to approach the assignment with diligence, objectivity and urgency.He noted that the committee’s recommendations would play a critical role in improving the ease of doing business, strengthening investor confidence and advancing the Federal Government’s fiscal reform agenda before formally inaugurating the committee.
