Committee has six weeks to recommend VAT exemptions, zero-rated supplies and implementation framework for Nigeria’s tax reforms.
The Federal Government 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 committee was inaugurated by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, who charged members to develop a practical VAT framework that aligns with the objectives of the Tax Reform Acts and addresses the realities of Nigeria’s economy.
In a statement issued on Saturday by the Head of Information and Public Relations at the Federal Ministry of Finance, Mr. Efe Ovuakporie, Oyedele described the Tax Reform Acts, which came into effect on January 1, 2026, as the most extensive overhaul of Nigeria’s tax system in decades.
He said the reforms were designed to simplify tax administration, improve certainty, enhance competitiveness, protect vulnerable Nigerians and provide a stronger foundation for sustainable economic growth.
According to the minister, while the previous VAT Modification Order made under the repealed VAT Act had served its purpose, the new legal framework requires a fresh order to support the implementation of the Nigeria Tax Act, 2025.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,” Oyedele said.
He directed the committee to review the legal framework, administrative practices and policy directives governing VAT administration, particularly the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.
The committee is also expected to engage stakeholders across government institutions, the organised private sector and professional bodies to ensure its recommendations are practical and balanced.
Among its responsibilities is the preparation of 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 and recommend amendments to relevant tax laws where necessary.
Oyedele urged members to ensure their recommendations remain faithful to both the letter and spirit of the new tax laws, noting that the framework should encourage industrial growth, support investment, promote exports, strengthen food security, foster innovation and facilitate Nigeria’s energy transition.
The committee has been given six weeks to submit its report, which will include implementation notes, schedules of VAT-exempt and zero-rated supplies with corresponding harmonised system codes, a stakeholder consultation report and recommendations on legislative amendments.
Expressing confidence in the committee, whose membership comprises representatives of key government agencies and the private sector, the minister said its work would strengthen investor confidence and improve the ease of doing business in Nigeria.
“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.