FG Inaugurates Inter-Ministerial Committee To Develop 2026 VAT Modification Order

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ABUJA – The Federal Government has inaugurated an Inter Ministerial Committee to develop the 2026 Val­ue Added Tax (VAT) Modifica­tion Order, a significant step in direction of guaranteeing the sleek implemen­tation of Nigeria’s new tax legal guidelines and offering better certainty for companies, buyers and tax directors.

The Minister of Finance and Coordinating Minister of the Economic system, Mr. Taiwo Oyedele, inaugurated the Committee on Friday in his workplace, charging members to ship a contemporary and sensible VAT framework that displays the intent of the Tax Reform Acts and responds to the realities of right now’s financial system.

He described the Tax Reform Acts, which got here into impact on January 1, 2026, as essentially the most ex­tensive adjustments to Nigeria’s tax system in a long time, noting that the reforms simplify tax administra­tion, enhance certainty, energy­en competitiveness, shield vul­nerable Nigerians and create a stronger basis for maintain­ready financial development.

Efe Ovuakporie, Head, Infor­mation and Public Relations, who made this recognized in a press release on Saturday famous that the Min­ister defined that whereas the earlier VAT Modification Or­der made below the repealed VAT Act had served its function, the brand new authorized framework requires a contemporary Order to supply readability, up­date related schedules and sup­port the efficient implementation of the Nigeria Tax Act.

“This isn’t about repro­ducing an outdated doc,” Mr. Oyedele mentioned. “It’s about devel­oping a VAT Modification Order that’s clear, sensible and respon­sive to the wants of a altering financial system.”

He acknowledged that the brand new order ought to take away uncertainty, make compliance simpler for taxpayers, assist funding choices and supply tax directors with clearer steerage in imple­menting the legislation.

The minister directed the committee to undertake a thor­ough evaluate of the authorized body­work, administrative practices and coverage directives governing VAT administration, significantly the VAT exempt and nil rated provisions contained in Half IV of the Nigeria Tax Act, 2025, whereas figuring out areas that re­quire additional clarification.

He additionally charged members to have interaction extensively with stake­holders throughout authorities, the organised non-public sector, profes­sional our bodies and different curiosity teams to validate classifications, deal with implementation con­cerns and be sure that the ultimate suggestions are sensible and balanced.

Oyedele additional instructed the committee to suggest a complete schedule of VAT exempt and nil rated provides, bearing in mind income implications, social affect, Nigeria’s treaty obliga­tions and regional integration commitments.

As well as, the committee is anticipated to arrange a transparent and implementable VAT Modifica­tion Order that aligns with the provisions of the Nigeria Tax Act and, the place obligatory, rec­ommend amendments to the Tax Reform Acts and different enabling legal guidelines to strengthen implementa­tion.

The minister urged members to make sure that each recommen­dation stays devoted to each the letter and the spirit of the brand new tax legal guidelines, including that the or­der ought to encourage industrial development, assist funding, professional­mote exports, strengthen meals se­curity, encourage innovation and facilitate Nigeria’s power transi­tion with out compromising the integrity of the VAT system.

He additionally confused the necessity to scale back ambiguity in VAT administration in order that taxpay­ers, buyers, regulators and tax directors can function with better confidence and certainty.

Oyedele additional inspired the committee to attract from in­ternational expertise whereas en­suring that the ultimate doc displays Nigeria’s distinctive eco­nomic realities and growth priorities.

The committee has been given six weeks to finish its assign­ment and submit a Draft VAT Modification Order, schedules of VAT exempt and nil rated provides with their correspond­ing Harmonised System Codes, implementation notes, a stake­holder session report and suggestions on any legis­lative amendments thought of obligatory.