FG inaugurates committee to review VAT framework for new tax acts

Nigeria's Finance Minister, Taiwo Oyedele, has launched an inter-ministerial committee tasked with developing a modern Value Added Tax Modification Order. This initiative aims to support the implementation of Nigeria’s Tax Reform Acts, which took effect on January 1, 2026.

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The Tax Reform Acts represent the most comprehensive reform of Nigeria’s tax system in decades. They simplify our tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians, and position our economy for sustainable growth.

The committee's primary goal is to create a "modern, coherent, and forward-looking VAT Modification Order" that complements the new legislation and aids Nigeria's economic transformation. Minister Oyedele emphasized that the committee is not to replicate the previous VAT Modification Order but to build upon it.

Key responsibilities for the committee include reviewing the existing VAT administration framework, identifying areas needing clarification, and engaging with public and private sector stakeholders. They will also develop comprehensive lists of VAT-exempt and zero-rated supplies, considering revenue implications and international obligations. A clear and implementable VAT Modification Order will be drafted, with recommendations for legislative amendments where necessary.

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The Committee has been mandated to: Review Nigeria’s existing VAT administration framework and identify areas requiring clarification. Engage public and private sector stakeholders to validate classifications and ensure alignment with economic and social objectives. Develop comprehensive lists of VAT-exempt and zero-rated supplies, considering revenue implications and international obligations. Draft a clear, implementable VAT Modification Order. Recommend legislative amendments where necessary.

Minister Oyedele outlined five guiding principles for the committee's work: fidelity to the law, growth-oriented design, clarity and certainty, broad stakeholder engagement, and international benchmarking. The committee has six weeks to complete its assignment and submit its findings, including draft orders, schedules of exemptions, implementation notes, and a stakeholder consultation report.

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This Order should promote industrialisation, investment, exports, innovation, food security, and energy transition, without undermining the integrity of the VAT system.