In a major step towards strengthening Nigeria's tax administration, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has inaugurated an Inter-Ministerial Committee to develop the Value Added Tax (VAT) Modification Order 2026. The initiative forms part of the Federal Government's commitment to the effective implementation of the Tax Reform Acts, which came into force on 1 January 2026.
The inauguration of the committee marks another milestone in the government's efforts to modernize Nigeria's tax system and provide a clearer legal framework for VAT administration. The proposed VAT Modification Order is expected to address implementation issues arising from the new tax laws while promoting a more transparent, predictable, and business-friendly tax environment.
Speaking during the inauguration ceremony in Abuja, Mr. Oyedele emphasized that the committee's assignment goes beyond updating existing regulations. According to him, the objective is to develop a comprehensive VAT framework that aligns with the new tax laws, promotes economic growth, enhances compliance, and provides certainty for taxpayers and businesses.
The committee has been given six weeks to complete its assignment. Its mandate includes reviewing the current VAT framework, identifying areas requiring clarification, engaging relevant stakeholders across both the public and private sectors, compiling updated lists of VAT-exempt and zero-rated goods and services together with their Harmonised System (HS) Codes, drafting the VAT Modification Order 2026, recommending legislative amendments where necessary, and preparing implementation guidelines.
The committee comprises representatives from key government institutions and private-sector organizations, including the Federal Ministry of Finance, Nigeria Revenue Service (NRS), Nigeria Customs Service, Federal Ministry of Industry, Trade and Investment, Joint Revenue Board, Manufacturers Association of Nigeria (MAN), the Tax Advisory Committee, and the Tax Justice and Governance Platform. This broad representation is intended to ensure that the new Order reflects practical business realities while remaining consistent with the objectives of Nigeria's tax reforms.
Mr. Oyedele stated that the committee's work will be guided by the principles of legal compliance, transparency, stakeholder engagement, economic competitiveness, and international best practices. He noted that the VAT Modification Order should not only simplify tax administration but also support investment, industrialisation, exports, innovation, food security, and sustainable economic development.
The VAT Modification Order 2026 is expected to reduce ambiguities in VAT administration, improve compliance, strengthen investor confidence, and enhance the ease of doing business in Nigeria. It will also provide taxpayers with greater certainty regarding VAT obligations under the country's reformed tax regime.
The inauguration of the Inter-Ministerial Committee demonstrates the Federal Government's determination to implement a modern, efficient, and growth-oriented VAT system. Once finalized, the VAT Modification Order 2026 is expected to become a key instrument in advancing Nigeria's fiscal reform agenda while supporting sustainable economic growth and improved revenue administration.
AdaTax Matters Insight
The inauguration of this committee underscores the Federal Government's commitment to building a modern, transparent, and business-friendly tax system. For taxpayers and tax professionals, the VAT Modification Order 2026 will be a significant development to watch, as it is expected to shape how VAT is applied across various sectors of the economy.
Businesses should closely monitor the committee's recommendations and prepare to review their VAT compliance processes once the Order is released. Early understanding and compliance will help organisations minimise tax risks and take advantage of any new VAT exemptions or zero-rated provisions introduced under the Order.
As always, AdaTax Matters will continue to keep you informed on key tax developments, provide practical insights into Nigeria's evolving tax landscape, and help you stay compliant in an ever-changing regulatory environment.
Stay informed. Stay compliant. Stay ahead with AdaTax Matters.
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