FG Sets Up Committee to Draft 2026 VAT Order, Advance Tax Reform Agenda

The Federal Government has inaugurated an inter-ministerial committee to prepare the 2026 Value Added Tax (VAT) Modification Order as part of efforts to implement Nigeria’s ongoing tax reforms.
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‎The development was disclosed in a statement issued on Saturday in Abuja by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie.
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‎According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, formally inaugurated the committee on Friday in Abuja.
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‎Speaking at the inauguration, Oyedele said the committee was tasked with designing a practical VAT framework that aligns with the objectives of the recently enacted Tax Reform Acts while responding to present-day economic realities.
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‎He described the Tax Reform Acts, which came into force on January 1, as the most significant restructuring of Nigeria’s tax system in decades, noting that they are intended to simplify tax administration, provide greater certainty, improve competitiveness and stimulate long-term economic growth.
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‎The minister explained that the repeal of the previous VAT Act made it necessary to introduce a new VAT Modification Order to provide clarity, revise relevant schedules and ensure effective implementation of the Nigeria Tax Act.
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‎He urged the committee to move beyond replicating the former VAT order and instead produce a framework that is practical, responsive and easy to implement. According to him, the new order should eliminate uncertainty, simplify tax compliance and offer clear guidance to tax administrators.
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‎Oyedele also directed members to review the legal, administrative and policy structures governing VAT administration, including provisions relating to VAT exemptions and zero-rated items under Part IV of the Nigeria Tax Act, 2025.
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‎He further instructed the committee to engage government institutions, private sector stakeholders and professional bodies throughout the assignment to ensure the recommendations are practical, balanced and broadly accepted.
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‎The committee was also asked to recommend comprehensive VAT exemption and zero-rated schedules while taking into account revenue generation, social impact and Nigeria’s regional and international commitments.
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‎In addition, the minister charged members with preparing an implementable VAT Modification Order consistent with the Nigeria Tax Act and proposing legislative amendments where necessary to strengthen implementation.
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‎He said the framework should support industrial development, attract investment, encourage exports, strengthen food security, promote innovation and facilitate the country’s energy transition.
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‎Oyedele stressed the importance of removing ambiguities in the tax system to boost confidence among taxpayers, investors and regulators, while encouraging the committee to adopt global best practices that reflect Nigeria’s development priorities.
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‎Expressing confidence in the committee’s expertise, he said businesses require certainty, investors need confidence and the government is committed to establishing a VAT system that promotes economic growth and efficient tax administration.
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‎He added that the committee’s recommendations would help improve the ease of doing business, strengthen investor confidence and advance the Federal Government’s broader fiscal reform agenda.
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‎The committee has been given six weeks to submit a draft VAT Modification Order alongside its implementation recommendations.
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‎Its membership comprises representatives from the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, as well as other public and private sector organisations.