FG Moves to Strengthen VAT Regime, Inaugurates Committee to Draft 2026 Tax Framework
Oyedele tasks stakeholders to deliver practical VAT Modification Order that boosts investment, eases compliance and supports economic growth
By Pan Afric Reporters
The Federal Government has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order, marking another milestone in the implementation of Nigeria’s new tax reform agenda aimed at simplifying tax administration, improving investor confidence and providing greater certainty for businesses and tax authorities.
The committee, inaugurated by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has been given six weeks to produce a comprehensive VAT framework that aligns with the Nigeria Tax Act 2025 and supports the effective implementation of the country’s new tax laws.
The announcement was contained in a press statement issued by the Federal Ministry of Finance and signed by Efe Ovuakporie, Head, Information and Public Relations, dated 25 July 2026.
Speaking during the inauguration ceremony in Abuja, Oyedele described the Tax Reform Acts, which came into force on January 1, 2026, as the most comprehensive overhaul of Nigeria’s tax system in decades.
According to him, the reforms are designed to simplify tax administration, improve compliance, strengthen economic competitiveness, protect vulnerable citizens and lay a stronger foundation for sustainable economic growth.
He explained that although the previous VAT Modification Order under the repealed VAT Act had served its purpose, the introduction of the Nigeria Tax Act made it necessary to develop a new Order that reflects current realities and provides greater clarity for taxpayers and administrators.
“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.
The Minister stressed that the new Order should eliminate uncertainty, make tax compliance easier, guide investment decisions and provide tax administrators with clear implementation guidelines.
He directed the Committee to undertake a comprehensive review of the legal and administrative framework governing VAT, particularly the provisions relating to VAT-exempt and zero-rated goods and services under Part IV of the Nigeria Tax Act, 2025, while identifying areas requiring further clarification.
Oyedele also instructed members to engage extensively with stakeholders across government institutions, the organised private sector, professional bodies and other interest groups to ensure that the final recommendations are practical, balanced and widely accepted.
The Committee is expected to recommend a comprehensive schedule of VAT-exempt and zero-rated supplies after considering revenue implications, social impact, Nigeria’s treaty obligations and regional integration commitments.
In addition, it will prepare a draft 2026 VAT Modification Order, implementation guidelines, stakeholder consultation report, schedules of VAT-exempt and zero-rated items with their Harmonised System (HS) Codes, and recommend legislative amendments where necessary.
The Minister urged members to ensure that every recommendation reflects both the letter and spirit of the new tax laws while promoting industrialisation, investment, exports, food security, innovation and Nigeria’s transition to cleaner energy.
“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 stated.
He further encouraged the Committee to draw lessons from international best practices while ensuring that the final framework remains tailored to Nigeria’s economic realities and development priorities.
Membership of the Committee comprises representatives of 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 (MAN), Tax Advisory Committee, and the Tax Justice and Governance Platform.
Expressing confidence in the composition of the Committee, Oyedele said the blend of expertise from both the public and private sectors provides a solid foundation for developing a technically sound and practical VAT framework capable of supporting the effective administration of one of Nigeria’s most important taxes.
He noted that the Committee’s recommendations would play a critical role in improving the ease of doing business, strengthening investor confidence and advancing the Federal Government’s broader fiscal reform programme.
