FG Inaugurates Committee to Develop 2026 VAT Modification Order, Targets Greater Tax Certainty
Oru Leonard
The Federal Government has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order, in a move aimed at strengthening the implementation of Nigeria’s new tax laws and providing greater certainty for businesses, investors and tax administrators.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, inaugurated the committee in Abuja on Friday, directing members to produce a modern, practical and investor-friendly VAT framework that aligns with the objectives of the Tax Reform Acts.
According to the Minister, the Tax Reform Acts, which took effect on January 1, 2026, represent the most far-reaching overhaul of Nigeria’s tax system in decades. He said the reforms are designed to simplify tax administration, improve certainty, enhance competitiveness, protect vulnerable citizens and support sustainable economic growth.
Oyedele explained that although the previous VAT Modification Order under the repealed VAT Act served its purpose, the new legal framework requires a fresh Order to clarify implementation, update schedules and support the effective administration 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.
He noted that the new Order should eliminate ambiguities, simplify compliance for taxpayers, guide tax administrators and encourage investment by providing greater clarity on VAT obligations.
The Minister tasked the committee with reviewing the legal framework, administrative practices and policy directives governing VAT administration, particularly the exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025, while identifying areas requiring further clarification.
He also directed members to engage extensively with stakeholders across government, the organised private sector, professional bodies and other interest groups to ensure the final recommendations are balanced, practical and widely accepted.
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, it will prepare a draft VAT Modification Order consistent with the Nigeria Tax Act and recommend amendments to the Tax Reform Acts and other enabling laws where necessary to strengthen implementation.
Oyedele stressed that the committee’s recommendations must remain faithful to both the letter and spirit of the new tax laws, while promoting industrial growth, investment, exports, food security, innovation and Nigeria’s energy transition without compromising the integrity of the VAT system.
He also encouraged members to draw from international best practices while ensuring the final framework reflects Nigeria’s economic realities and development priorities.
The committee has been given six weeks to submit its report, including a Draft VAT Modification Order, schedules of VAT-exempt and zero-rated supplies with corresponding Harmonised System Codes, implementation notes, a stakeholder consultation report and recommendations for any required legislative amendments.
Its membership includes representatives from 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 expertise, the Minister said its work 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.
“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,” Oyedele said.
