The federal government has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order to support the implementation of Nigeria’s tax reforms.

This is contained in a statement issued on Saturday in Abuja by Efe Ovuakporie, the head of information and public relations at the Federal Ministry of Finance.

According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, inaugurated the committee in Abuja on Friday.

During the inauguration, Mr Oyedele said that the committee would develop a practical VAT framework reflecting the objectives of the Tax Reform Acts and current economic realities.

He described the Tax Reform Acts, which took effect on Jan. 1, as the most comprehensive overhaul of the country’s tax system in decades.

The minister said that the reforms would simplify tax administration, improve certainty, strengthen competitiveness and promote sustainable economic growth.

He said that a new VAT Modification Order became necessary following the repeal of the previous VAT Act.

According to him, the new order will provide clarity, update relevant schedules and support the implementation of the Nigeria Tax Act.

Mr Oyedele directed the committee to produce a clear, practical and responsive VAT framework rather than merely reproducing the previous order.

He said that the new order should reduce uncertainty, simplify compliance and strengthen guidance for tax administrators.

The minister directed members to review the legal, administrative and policy frameworks governing VAT administration.

He asked the committee to examine VAT exemption and zero-rated provisions under Part IV of the Nigeria Tax Act, 2025.

Mr Oyedele also urged members to engage government agencies, private sector operators and professional bodies during the assignment.

He said that the stakeholder consultations would ensure practical, balanced and widely accepted recommendations.

The minister also directed the committee to recommend comprehensive VAT exemption and zero-rated schedules.

He said the recommendations should consider revenue implications, social impact and Nigeria’s regional and international obligations.

Mr Oyedele instructed the committee to prepare an implementable VAT Modification Order aligned with the Nigeria Tax Act.

He said members should recommend legislative amendments where necessary to strengthen implementation.

The minister urged the committee to support industrial growth, investment, exports, food security, innovation and energy transition.

He stressed the need to eliminate ambiguity and improve confidence among taxpayers, investors and regulators.

Mr Oyedele encouraged the committee to adopt global best practices while reflecting Nigeria’s development priorities.

Mr Oyedele expressed confidence that the committee possessed the expertise required to produce a practical and technically sound VAT framework.

According to him, businesses needed certainty, investors required confidence and the government sought a VAT system that supported growth and ease of administration.

The minister said the committee’s work would strengthen investor confidence, improve the ease of doing business and advance the Federal Government’s fiscal reform agenda.

The committee has six weeks to submit a draft VAT Modification Order and implementation recommendations.

The committee’s membership includes representatives of the Finance Ministry, the Nigeria Revenue Service, the Nigeria Customs Service and other public and private institutions. 

(NAN)