The Federal Government has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax, VAT, Modification Order. The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, inaugurated the committee on Friday in Abuja.

The Minister said the new Order is a key step to ensure smooth implementation of Nigeria’s new tax laws. He said it will provide greater certainty for businesses, investors and tax administrators under the Tax Reform Acts that took effect on January 1, 2026.

Mr. Oyedele described the Tax Reform Acts as the biggest changes to Nigeria’s tax system in decades. He noted that while the old VAT Modification Order served its purpose, the new legal framework requires a fresh Order to provide clarity, update schedules and support the Nigeria Tax Act.

The Committee was directed to review VAT laws, administrative practices and policy directives, with focus on VAT exempt and zero-rated items in Part IV of the Nigeria Tax Act 2025. They are to identify areas needing clarification and engage stakeholders including the private sector and professional bodies.

The Minister charged them to recommend a comprehensive schedule of VAT exempt and zero-rated supplies, considering revenue impact, social effect, and Nigeria’s regional commitments. They are also to prepare a clear VAT Modification Order and suggest any needed amendments to strengthen implementation.

Mr. Oyedele said the new Order should encourage industrial growth, support investment, promote exports, strengthen food security, and aid Nigeria’s energy transition, without weakening the VAT system. He stressed the need to reduce ambiguity so taxpayers and regulators can operate with more confidence.

The Committee has six weeks to submit a draft VAT Modification Order, schedules with Harmonised System Codes, implementation notes, a stakeholder report, and recommendations for legislative amendments. Members include the Federal Ministry of Finance, Nigeria Revenue Service, Customs, MAN, and other key agencies.

The Minister expressed confidence in the committee’s mix of government and private sector expertise. He urged them to work with diligence and urgency, saying businesses need certainty and government needs a VAT system that is easy to administer and supports growth.