FG inaugurates inter-ministerial committee to draft 2026 VAT modification order

The Federal Government has inaugurated an Inter-Ministerial Committee to formulate the 2026 Value Added Tax (VAT) Modification Order, aiming to streamline the implementation of Nigeria’s updated tax laws and provide clear guidelines for businesses, investors, and tax authorities.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, officially inaugurated the committee on Friday, last week in his office in Abuja.

He tasked the panel with creating a modern, practical VAT framework that aligns with the Tax Reform Acts, which officially took effect on January 1, 2026.

Oyedele described the new reform acts as the most comprehensive overhaul of Nigeria’s tax landscape in decades.

He noted that while the previous VAT Modification Order served its purpose under the old legislation, the current legal framework necessitates an updated Order to eliminate ambiguity, modernize schedules, and support the effective rollout of the Nigeria Tax Act.

The minister directed the committee to review existing legal frameworks, administrative practices, and tax policies, with a specific focus on the VAT-exempt and zero-rated provisions outlined in Part IV of the Nigeria Tax Act, 2025.

He stressed that the final document should promote industrial growth, encourage investment, drive exports, support food security, and facilitate the nation’s energy transition without compromising the integrity of the tax system.

The committee has been given six weeks to submit a draft VAT Modification Order, a schedule of exempt and zero-rated supplies with corresponding Harmonized System Codes, implementation guidelines, a stakeholder consultation report, and proposed legislative amendments where necessary.

The panel features broad representation across both public and private sectors, including the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, the Federal Ministry of Industry, Trade and Investment, the Joint Revenue Board, the Manufacturers Association of Nigeria, the Tax Advisory Committee, and the Tax Justice and Governance Platform.