Oyedele inaugurates inter-ministerial committee on VAT modification

Nigeria’s Minister of Finance and Coordinating Minister of the Economy has inaugurated a specialized Inter-Ministerial Committee tasked with developing a new Value Added Tax (VAT) Modification Order for 2026.

The move follows the rollout of the nation’s sweeping Tax Reform Acts, which officially took effect on January 1, 2026.

Speaking at the inauguration ceremony at the Federal Ministry of Finance headquarters in Abuja, the Minister framed the initiative as a crucial step toward solidifying Nigeria’s broadest tax overhaul in decades.

The newly formed panel has been given a six-week deadline to review current administrative practices, consult key sectors, and submit a finalized draft order along with detailed schedules of exempt and zero-rated items categorized by Harmonized System (HS) codes.

Unlike previous administrative frameworks superseded by the recent tax overhaul, the new committee’s focus centers on building a forward-looking, predictable tax structure.

The Minister emphasized that the panel must craft a modern order that aligns directly with the core legislation while safeguarding vulnerable households, boosting investor confidence, and supporting broader economic growth.

The committee’s mandate includes evaluating existing VAT processes, establishing clear guidelines for tax exemptions, and engaging heavily with both public and private sector leaders.

Guided by principles of legal fidelity, market growth, and international best practices, the framework is expected to support key national priorities, including industrialization, energy transition, food security, and export expansion, without diluting the integrity of the broader tax system.

To balance regulatory oversight with business interests, the committee brings together representatives from several key entities. Participating government bodies include the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, the Federal Ministry of Industry, Trade and Investment, and the Joint Revenue Board.

Private sector and civil society perspectives will be represented by the Manufacturers Association of Nigeria, the Tax Advisory Committee, and the Tax Justice and Governance Platform.

The committee is expected to wrap up its work in early September 2026, delivering a full draft order, detailed implementation notes, and a comprehensive stakeholder consultation report.