The Federal Government has begun work on a new framework for the administration of Value Added Tax (VAT) in Nigeria, with Finance Minister and Coordinating Minister for the Economy, Taiwo Oyedele, inaugurating a committee to develop the 2026 VAT Modification Order.

The committee was inaugurated in Abuja on Friday, July 24, 2026, according to a statement issued by the Ministry of Finance’s Head of Information and Public Relations, Efe Ovuakporie this morning.

Oyedele said the committee’s assignment was crucial to the effective implementation of Nigeria’s new tax laws, adding that its work would provide greater certainty for businesses, investors and tax administrators.

Raymond Omachi, the Permanent Secretary of the Ministry of Finance, was appointed Chairman of the committee.

The Minister described the tax reforms as the most far-reaching overhaul of Nigeria’s tax system in decades.

According to him, the reforms are designed to simplify tax administration, improve certainty, boost Nigeria’s competitiveness, protect vulnerable Nigerians and create a stronger foundation for sustainable economic growth.

Oyedele said the previous VAT Modification Order, which was issued under the now-repealed VAT Act, had served its purpose, making a new order necessary to bring VAT administration in line with the Nigeria Tax Act, 2025.

“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 the new order must remove ambiguity, make compliance easier for taxpayers, support investment decisions and provide tax administrators with clearer guidance on the implementation of the law.

The Minister directed the committee to conduct a comprehensive review of the legal framework, administrative practices and policy directives governing VAT administration.

Particular attention is to be paid to the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.

Members of the committee were also asked to identify areas requiring further clarification and consult extensively with government agencies, the organised private sector, professional bodies and other stakeholders to validate classifications and address implementation concerns.

Oyedele further directed the committee 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.

The committee is also expected to prepare a practical VAT Modification Order that aligns with the Nigeria Tax Act and recommend amendments to the Tax Reform Acts and other relevant laws where necessary.

The Minister urged members to ensure that their recommendations remained consistent with the letter and spirit of the new tax laws.

He said the new order should promote industrial growth, attract investment, encourage exports, strengthen food security, foster innovation and support Nigeria’s energy transition without compromising the integrity of the VAT system.

Oyedele stressed the need to reduce uncertainty in VAT administration so that taxpayers, investors, regulators and tax authorities could operate with greater confidence.

He also asked the committee to draw from global best practices while ensuring that the final document reflected Nigeria’s economic realities and development priorities.

The committee has six weeks to complete its assignment and submit a draft VAT Modification Order, schedules of VAT-exempt and zero-rated supplies with their corresponding Harmonised System Codes, implementation notes, a stakeholder consultation report and recommendations on any necessary legislative amendments.

Its membership includes representatives of 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.

Expressing confidence in the committee, Oyedele said the combination of public- and private-sector expertise would help produce a technically sound and practical instrument for efficient VAT administration under Nigeria’s new tax regime.

“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,” he said.

Oyedele added that the committee’s recommendations would shape the administration of one of Nigeria’s most important taxes, improve the ease of doing business, strengthen investor confidence and advance the Federal Government’s fiscal reform agenda.