BY COBHAM NSA – The Federal Government has officially inaugurated a high-powered inter-ministerial panel to forge the groundbreaking 2026 Value Added Tax (VAT) Modification Order in a bold move to unlock economic stability and fuel investor confidence in the country.
This critical legal framework marks a revolutionary step forward in executing Nigeria’s sweeping tax reforms that would eliminate operational friction and deliver a seamless, transparent marketplace for corporate leaders and tax authorities nationwide.
Inaugurating the Committee in Abuja on Friday, Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, charged members to deliver a modern and practical VAT framework that reflects the intent of the Tax Reform Acts and responds to the realities of today’s economy.
Oyedele, who described the Tax Reform Acts, which came into effect on 1 January 2026, as the most extensive changes to Nigeria’s tax system in decades, said the reforms simplify tax administration, improve certainty, strengthen competitiveness, protect vulnerable Nigerians and create a stronger foundation for sustainable economic growth.
He also said though the previous VAT Modification Order made under the repealed VAT Act served its purpose, the new legal framework requires a fresh Order to provide clarity, update relevant schedules and support the effective implementation of the Nigeria Tax Act.
Harping on the need to ignite a bold new era of tax certainty and economic growth for investors and businesses countrywide, the Minister said: “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.”
According to him, the new Order seek to remove uncertainty, make compliance easier for taxpayers, support investment decisions and provide tax administrators with clearer guidance in implementing the law.
He urged the Committee to undertake a thorough review of 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, while identifying areas that require further clarification.
In addition, Oyedele tasked 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 that the final recommendations are practical and balanced.
Furthermore, he directed the Committee 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 Minister said it is also within the Committee’s mandate to prepare a clear and implementable VAT Modification Order that aligns with the provisions of the Nigeria Tax Act (NTA) and, where necessary, recommend amendments to the Tax Reform Acts and other enabling laws to strengthen implementation.
Oyedele urged members to align recommendations with the new tax laws, ensuring the Order drives industrial growth, investment, exports, food security, innovation, and energy transition while maintaining VAT system integrity.
He challenged the committee to build a world-class tax framework explicitly tailored to Nigeria’s economic realities, adding that by blending top-tier public and private sector expertise, this powerhouse team is uniquely equipped to deliver a bulletproof, practical VAT administration system that will redefine the nation’s new tax regime to operate with greater confidence and certainty.
Insisting that “Nigerians cannot wait” much longer, the Minister said: “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.”
Formally wishing members success in handling the assignment, Oyedele emphasized that their work will not only revolutionize Nigeria’s tax administration, but boost investor confidence, and drive the Federal Government’s fiscal reforms.
Meanwhile, a statement by Efe Ovuakporie, Head, Information and Public Relations, Federal Ministry of Finance, said 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.
The Committee membership comprises representatives of the Federal Ministry of Finance, the Nigeria Revenue Service (NRS), the Nigeria Customs Service (NCS), and the Federal Ministry of Industry, Trade and Investment.
Others include the Joint Revenue Board (JTB), the Manufacturers Association of Nigeria (MAN), the Tax Advisory Committee and the Tax Justice and Governance Platform.
