Finance Minister Taiwo Oyedele gives panel six weeks to produce a new VAT framework aimed at improving tax certainty, supporting investment and simplifying compliance….
The Federal Government has inaugurated an inter-ministerial committee tasked with drafting the 2026 Value Added Tax (VAT) Modification Order, a key step in implementing Nigeria’s recently enacted tax reform laws.
The committee was formally inaugurated in Abuja on Friday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who said the exercise is intended to create a modern VAT framework that aligns with the country’s new tax regime and addresses current economic realities.
According to a statement issued on Saturday by the Ministry of Finance’s Head of Information and Public Relations, Efe Ovuakporie, the committee’s work is expected to provide greater clarity for businesses, investors and tax administrators while supporting the effective implementation of the Nigeria Tax Act.
Oyedele described the new tax legislation, which came into force on January 1, 2026, as one of the most significant overhauls of Nigeria’s tax system in decades. He said the reforms are designed to simplify tax administration, improve compliance, strengthen investor confidence and promote sustainable economic growth while protecting vulnerable Nigerians.
The minister explained that the previous VAT Modification Order was issued under the now-repealed VAT Act and no longer reflects the country’s current legal framework. As a result, he said a new order is required to update relevant schedules, remove uncertainties and provide practical guidance for implementing the Nigeria Tax Act.
“This is not about reproducing an old document,” Oyedele said, stressing that the committee’s responsibility is to develop a VAT Modification Order that is clear, practical and responsive to the realities of a changing economy.
He noted that the revised framework should make tax compliance easier, reduce ambiguity, support investment decisions and provide tax authorities with clearer operational guidelines.
As part of its assignment, the committee has been directed to review existing legal and administrative frameworks governing VAT, with particular attention to the provisions on VAT-exempt and zero-rated supplies contained in Part IV of the Nigeria Tax Act 2025.
Oyedele also instructed members to engage widely with stakeholders, including government agencies, private sector organisations, professional associations and other interest groups, to ensure the new framework reflects practical implementation concerns.
The committee is expected to produce a comprehensive schedule of VAT-exempt and zero-rated goods and services, taking into account potential revenue implications, social impact, Nigeria’s international treaty obligations and regional trade commitments.
Beyond drafting the VAT Modification Order, the panel has also been asked to recommend any legislative amendments that may be required to strengthen the implementation of the Tax Reform Acts and other relevant laws.
According to the minister, the recommendations should support industrial development, encourage investment, promote exports, strengthen food security, stimulate innovation and facilitate Nigeria’s energy transition while preserving the integrity of the VAT system.
He emphasized that a transparent and predictable VAT regime would benefit taxpayers, regulators, businesses and investors alike by reducing uncertainty and improving confidence in the tax system.
“Businesses need certainty. Investors need confidence. Government needs a VAT system that is easy to administer and supports growth,” Oyedele said as he urged the committee to complete its work with diligence and urgency.
The panel has been given six weeks to submit its draft VAT Modification Order, implementation guidelines, stakeholder consultation report, schedules of VAT-exempt and zero-rated supplies with their corresponding Harmonised System (HS) codes, as well as recommendations for any legislative changes considered necessary.
The committee comprises representatives from the Federal Ministry of Finance, the Nigeria Revenue Service (NRS), the Nigeria Customs Service (NCS), the Federal Ministry of Industry, Trade and Investment, the Joint Revenue Board (JRB), the Manufacturers Association of Nigeria (MAN), the Tax Advisory Committee and the Tax Justice and Governance Platform.
