Nigeria Govt Inaugurates Committee to Develop 2026 VAT Order, Seeks Greater Tax Certainty
By Raphael Ekpang
Abuja (Core Reporters) – The Nigeria Government has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order, a move aimed at ensuring the effective implementation of Nigeria’s new tax laws while 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 on Friday in Abuja, charging members to produce a modern, practical and business-friendly VAT framework that aligns with the objectives of the Tax Reform Acts.
Oyedele described the Tax Reform Acts, which took effect on January 1, 2026, as the most far-reaching overhaul of Nigeria’s tax system in decades, noting that the reforms are designed to simplify tax administration, improve compliance, enhance competitiveness, protect vulnerable Nigerians and promote sustainable economic growth.
According to the minister, although the previous VAT Modification Order made under the repealed VAT Act served its purpose, the new legal framework requires a fresh Order that provides clarity, updates relevant schedules and supports the implementation of the Nigeria Tax Act.
“This is not about reproducing an old document,” Oyedele said. “It is about developing a VAT Modification Order that is clear, practical and responsive to the needs of a changing economy.”
He explained that the new Order should eliminate uncertainty, simplify tax compliance, support investment decisions and provide tax administrators with clearer guidance in implementing the law.
The minister directed the committee to undertake a comprehensive review of the legal framework, administrative practices and policy directives governing VAT administration, with particular attention to the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.
He also instructed members to engage extensively with stakeholders across government, the organised private sector, professional bodies and other interest groups to validate classifications, address implementation concerns and ensure the final recommendations are balanced and practical.
Among its responsibilities, 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.
The committee will also prepare a draft VAT Modification Order consistent with the provisions of 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 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 undermining the integrity of the VAT system.
He further urged members to reduce ambiguity in VAT administration so that taxpayers, investors, regulators and tax administrators can operate with greater confidence and certainty.
The minister encouraged the committee to draw on international best practices while ensuring the final framework 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, implementation notes, a stakeholder consultation report and recommendations on any legislative amendments considered necessary.
Its membership comprises representatives of 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.
Expressing confidence in the committee’s composition, Oyedele said the blend of expertise from both the public and private sectors would ensure the production of a technically sound and practical instrument for administering VAT 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,” the minister said.
He added that the committee’s work would strengthen investor confidence, improve the ease of doing business and advance the Federal Government’s fiscal reform agenda before formally inaugurating the panel.
