The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has inaugurated an Inter-Ministerial Committee to prepare the 2026 Value Added Tax (VAT) Modification Order as part of efforts to strengthen the implementation of Nigeria’s new tax laws.
The committee was inaugurated in Abuja on Friday, according to a statement issued by the Ministry of Finance’s Head of Information and Public Relations, Efe Ovuakporie.
Speaking at the inauguration, Oyedele said the committee’s assignment is crucial to the successful implementation of the Tax Reform Acts, which came into effect on January 1, 2026. He noted that the new VAT Modification Order would provide greater certainty for businesses, investors, and tax administrators.
The Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, was appointed chairman of the committee.
Oyedele described the ongoing tax reforms as the most comprehensive overhaul of Nigeria’s tax system in decades. According to him, the reforms are aimed at simplifying tax administration, improving compliance, enhancing the country’s competitiveness, protecting vulnerable citizens, and driving sustainable economic growth.
He explained that while the previous VAT Modification Order, issued under the now-repealed VAT Act, served its purpose, a new order is required to align with the provisions of the Nigeria Tax Act, 2025.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,” the minister said.
Oyedele said the new order should eliminate ambiguities, simplify tax compliance, support investment decisions, and provide clearer guidance for tax administrators.
He directed the committee to conduct a comprehensive review of the legal, administrative, and policy framework guiding VAT administration, with a focus on VAT-exempt and zero-rated items under Part IV of the Nigeria Tax Act, 2025.
The minister also instructed members to engage widely with stakeholders, including government agencies, the organised private sector, professional bodies, and other interest groups, to validate classifications and address implementation concerns.
In addition, the committee is expected to recommend a comprehensive list of VAT-exempt and zero-rated goods and services, taking into account revenue implications, social impact, Nigeria’s treaty obligations, and regional integration commitments.
The committee will also prepare a practical VAT Modification Order consistent with the Nigeria Tax Act and recommend amendments to the Tax Reform Acts and other relevant laws where necessary.
Oyedele urged members to ensure that their recommendations support industrial growth, attract investment, promote exports, strengthen food security, encourage innovation, and support Nigeria’s energy transition while maintaining the integrity of the VAT system.
He emphasized the importance of reducing uncertainty in VAT administration to improve the ease of doing business and boost investor confidence. He also encouraged the committee to adopt global best practices while ensuring that the final document reflects Nigeria’s unique economic realities and development priorities.
The committee has been given six weeks to complete its work and submit a draft VAT Modification Order, schedules of VAT-exempt and zero-rated supplies with their Harmonised System Codes, implementation guidelines, a stakeholder consultation report, and recommendations for any legislative amendments considered necessary.
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, Oyedele said the blend of public and private sector expertise would help produce a practical and technically sound framework for efficient VAT administration under Nigeria’s new tax regime.
He stressed that businesses and investors need certainty and urged members to carry out their assignment with diligence, objectivity, and urgency, noting that their recommendations would play a key role in strengthening Nigeria’s fiscal reform agenda and improving the country’s business environment.
READ ALSO:
- LAWMA Promises Better Waste Collection Across Lagos Within Eight Months
- Oyedele Inaugurates Committee to Draft 2026 VAT Modification Order
- Budget Office Says PFIPC Traces Back to Buhari Administration, Explains 2026 Budget Allocation
- Super Falcons Players Report Theft of Cash at Morocco Hotel Ahead of WAFCON
- Appeal Court Lifts Freeze on Aisha Achimugu’s Bank Accounts
