The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has inaugurated an Inter-Ministerial Committee charged with developing the 2026 Value Added Tax Modification Order.
The Ministry’s Head of Information and Public Relations, Efe Ovuakporie, stated in a release issued this morning that the committee was inaugurated in Abuja on Friday as part of efforts to ensure the smooth and effective implementation of Nigeria’s new tax laws.
Mr. Oyedele was quoted as saying that the committee’s work would “provide greater certainty for businesses, investors and tax administrators,” and that the assignment was critical to the successful implementation of the Tax Reform Acts, which took effect on January 1, 2026.
Mr. Raymond Omachi, Permanent Secretary of the Ministry of Finance, was appointed Chairman of the committee.
The minister described the reforms as the most comprehensive overhaul of Nigeria’s tax system in decades, designed to simplify tax administration, improve certainty, boost the country’s competitiveness, protect vulnerable citizens and establish a stronger foundation for sustainable economic growth.
According to him, the previous VAT Modification Order, issued under the now-repealed VAT Act, had fulfilled its role, but a new Order was required to align with the provisions of the Nigeria Tax Act, 2025.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,” Oyedele said.
He explained that the new Order should remove ambiguity, simplify compliance for taxpayers, support investment decisions and give tax administrators clearer guidance for enforcing the law.
The Minister directed the committee to conduct a thorough review of the legal framework, administrative practices and policy directives governing VAT administration, with special focus on VAT-exempt and zero-rated provisions listed in Part IV of the Nigeria Tax Act, 2025.
He tasked the members with identifying areas that require further clarification and engaging extensively with stakeholders from government, the organised private sector, professional bodies and other interest groups to validate classifications and address implementation issues.
Oyedele also instructed the committee to recommend a comprehensive schedule of VAT-exempt and zero-rated supplies, considering revenue implications, social impact, Nigeria’s treaty obligations and regional integration commitments.
In addition, the committee is expected to prepare a practical VAT Modification Order that conforms with the Nigeria Tax Act and to recommend any necessary amendments to the Tax Reform Acts and other enabling laws to strengthen implementation.
The Minister urged members to ensure their recommendations remain faithful to both the letter and spirit of the new tax laws, adding that the Order should promote industrial growth, attract investment, encourage exports, strengthen food security, foster innovation and support Nigeria’s energy transition without compromising the integrity of the VAT system.
He emphasised the need to reduce uncertainty in VAT administration so that taxpayers, investors, regulators and tax authorities can operate with greater confidence.
Oyedele further advised the committee to draw lessons from global best practices while ensuring the final document reflects Nigeria’s unique economic realities and development priorities.
The committee has been given 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.
Membership of the committee includes 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 ability, Oyedele said the combination of public and private sector expertise would produce a technically sound and practical instrument capable of supporting efficient VAT administration 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. I urge you to approach this assignment with diligence, objectivity and a sense of urgency,” he said.
He added that the committee’s recommendations 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.
