FG Sets Up Committee To Develop 2026 VAT Framework Under New Tax Laws
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The Federal Government has inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax (VAT) Modification Order as part of efforts to ensure the effective implementation of Nigeria’s new tax laws and provide greater certainty for businesses, investors and tax administrators.
The committee was inaugurated by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who charged members to deliver a practical VAT framework that reflects the objectives of the Tax Reform Acts and responds to the realities of Nigeria’s economy.
In a statement issued on Saturday by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie, the minister said that the Tax Reform Acts, which came into effect on January 1, 2026, represented the most extensive changes to Nigeria’s tax system in decades.
He said the reforms were designed to simplify tax administration, improve certainty, strengthen competitiveness, protect vulnerable Nigerians and create a stronger foundation for sustainable economic growth.
“This is not about reproducing an old document. It is about developing a VAT Modification Order that is clear, practical and responsive to the needs of a changing economy,” he said.
He said that the committee should review the legal framework, administrative practices and policy directives governing VAT administration, particularly the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.
The committee is expected to recommend a comprehensive schedule of VAT-exempt and zero-rated supplies, taking into account revenue implications, social impact, Nigeria’s treaty obligations and regional integration commitments.
It will also prepare a draft VAT Modification Order and, where necessary, recommend amendments to the Tax Reform Acts and other enabling laws.
Oyedele urged members to ensure their recommendations remain faithful to both the letter and spirit of the new tax laws, adding that the framework should encourage industrial growth, support investment, promote exports, strengthen food security, foster innovation and facilitate Nigeria’s energy transition.
Expressing confidence in the committee, whose membership includes representatives of key government agencies and the private sector, Oyedele said its work would improve the ease of doing business and strengthen investor confidence.
“Nigerians cannot wait. Businesses need certainty. Investors need confidence. Government needs a VAT system that is easy to administer and supports growth. I urge you to approach this assignment with diligence, objectivity and a sense of urgency,” the finance minister said.
