‎FG Inaugurates Committee To Develop 2026 VAT Modification Order

The Federal Government has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order, a key step aimed at ensuring the effective implementation of Nigeria’s new tax laws and providing greater certainty for businesses, investors and tax administrators.

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‎The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele who inaugurated the committee in Abuja charged them to produce a modern, practical and responsive VAT framework that aligns with the objectives of the Tax Reform Act and reflects the realities of Nigeria’s evolving economy.
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‎Oyedele described the Tax Reform Act, which came into effect on January 1, 2026, as the most comprehensive changes to Nigeria’s tax system in decades.

He said the reforms were designed to simplify tax administration, improve certainty, strengthen competitiveness, protect vulnerable Nigerians and lay a stronger foundation for sustainable economic growth.
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‎The minister explained that while the previous VAT Modification Order issued under the repealed VAT Act had served its purpose, the new legal framework requires a fresh Order to support the implementation of the Nigeria Tax Act.

According to him, the new document should remove ambiguity, simplify compliance for taxpayers and provide clearer guidance for tax administrators.
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‎He directed the committee to carry out a comprehensive review of the legal framework, administrative practices and policy directives governing VAT administration, particularly the VAT exempt and zero rated provisions contained in the Nigeria Tax Act, 2025.

The minister also urged members to identify areas requiring further clarification to ensure seamless implementation.
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‎Oyedele further instructed the committee to engage extensively with stakeholders, including government agencies, the organised private sector, professional bodies and other interest groups.

He said the consultations would help validate classifications, address implementation concerns and ensure the final recommendations are practical, balanced and widely accepted.
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‎The committee is also 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.

It will also prepare implementation notes and recommend any legislative amendments required to strengthen the new tax regime.
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‎The committee, made up of 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, has six weeks to submit its report.

Oyedele expressed confidence that its work would improve the ease of doing business, strengthen investor confidence and support the successful implementation of the Federal Government’s fiscal reform agenda.
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‎PR/Umbwanko Baba