Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, has inaugurated an Inter-Ministerial Committee to draft the 2026 Value Added Tax (VAT) Modification Order.
The Ministry’s Head of Information and Public Relations, Efe Ovuakporie, said in a statement that the committee was inaugurated in Abuja on Friday, as part of efforts to ensure effective implementation of Nigeria’s new tax laws.
Oyedele said the committee’s work would give businesses, investors and tax administrators greater certainty, and described the assignment as critical to implementing the Tax Reform Acts, which took effect on January 1, 2026.
Permanent Secretary of the Ministry of Finance, Raymond Omachi, will chair the committee.
Oyedele called the reforms the most far-reaching overhaul of Nigeria’s tax system in decades, designed to simplify tax administration, improve certainty, boost competitiveness, protect vulnerable Nigerians and support sustainable growth.
He said the previous VAT Modification Order, issued under the now-repealed VAT Act, had served its purpose but needed replacing to align with the Nigeria Tax Act, 2025.
“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 new Order, he explained, should remove ambiguity, simplify compliance, support investment decisions and give tax administrators clearer guidance.
Oyedele directed the committee to review the legal framework, administrative practices and policy directives guiding VAT administration, with particular focus on VAT-exempt and zero-rated provisions under Part IV of the Nigeria Tax Act, 2025. He tasked members with identifying grey areas and engaging stakeholders across government, the private sector, professional bodies and other groups to validate classifications and resolve implementation issues.
He also asked the committee to recommend a full schedule of VAT-exempt and zero-rated supplies, weighing revenue implications, social impact, treaty obligations and regional integration commitments — and to propose amendments to the Tax Reform Acts and other laws where necessary.
Oyedele urged members to stay true to the letter and spirit of the new tax laws, adding that the Order should drive industrial growth, attract investment, boost exports, strengthen food security, encourage innovation and support Nigeria’s energy transition without weakening the VAT system.
He stressed the need to cut uncertainty in VAT administration so taxpayers, investors, regulators and tax authorities can operate with confidence, and advised the committee to draw on global best practices while keeping the document rooted in Nigeria’s economic realities.
The committee has six weeks to submit a draft VAT Modification Order, along with schedules of VAT-exempt and zero-rated supplies with Harmonised System Codes, implementation notes, a stakeholder consultation report and recommendations on any legislative amendments.
Members are drawn from the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, the Federal Ministry of Industry, Trade and Investment, the Joint Revenue Board, the Manufacturers Association of Nigeria, the Tax Advisory Committee and the Tax Justice and Governance Platform.
Oyedele expressed confidence in the committee, saying the mix of public and private sector expertise would produce a sound, 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. I urge you to approach this assignment with diligence, objectivity and a sense of urgency,” he said.
He added that the committee’s recommendations would shape the administration of one of Nigeria’s most important taxes, improve the ease of doing business, strengthen investor confidence and advance the Federal Government’s fiscal reform agenda.
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