The Federal Government has inaugurated an inter-ministerial committee tasked with producing the 2026 Value Added Tax Modification Order, advancing the rollout of Nigeria's recently enacted tax legislation. The committee's mandate is to deliver a practical framework for VAT administration under the Nigeria Tax Act while offering greater certainty to taxpayers, businesses, and investors.
Speaking at the inauguration ceremony, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stressed that the assignment extends beyond merely revising an existing document. He explained that the committee is expected to produce a clear, practical, and responsive order that reflects the realities of Nigeria's changing economy and supports the objectives of the Tax Reform Acts, which took effect on 1 January 2026.
The committee has been granted a six-week timeline to complete its work. Its terms of reference include reviewing Nigeria's current VAT administration framework, pinpointing areas that need clarification, and consulting with stakeholders across both the public and private sectors. Additionally, the committee will compile comprehensive schedules of VAT-exempt and zero-rated goods and services, draft the new VAT Modification Order, and propose legislative amendments where necessary to facilitate smooth implementation of the reforms.
Government officials indicated that the initiative is designed to curb uncertainty in VAT administration, bolster compliance, and streamline tax processes under the new legal regime. By delivering clearer guidance on how taxable, exempt, and zero-rated supplies should be treated, the framework is expected to enhance tax certainty and reduce the frequency of disputes between taxpayers and revenue authorities.
The exercise forms part of the Federal Government's wider fiscal reform agenda, which seeks to modernise Nigeria's tax system, improve the ease of doing business, and strengthen domestic revenue mobilisation. Once finalised, the 2026 VAT Modification Order will serve as a critical implementation tool for the country's new tax laws and offer businesses clearer insight into their VAT obligations.
