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🇳🇬 Nigeria /Economy & Trade

Nigeria Forms Committee for 2026 VAT Modification Order Amid Tax Reforms

From ThisDay · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • The Nigerian government inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order.
  • The committee will recommend a schedule of VAT-exempt and zero-rated supplies, considering revenue, social impact, and regional commitments.
  • This reform aims to provide certainty for businesses and investors, aligning with the extensive changes in Nigeria's tax system since January 1, 2026.

Nigeria's federal government has launched an Inter-Ministerial Committee tasked with creating the 2026 Value Added Tax (VAT) Modification Order. This initiative is a significant stride toward ensuring the effective implementation of the nation's recently enacted tax laws, aiming to foster greater certainty for businesses, investors, and tax administrators.

The committee's mandate includes recommending a comprehensive schedule of VAT-exempt and zero-rated supplies. This recommendation process will carefully consider the potential impacts on revenue, social welfare, Nigeria's existing treaty obligations, and its commitments to regional economic integration.

Finance Minister Taiwo Oyedele inaugurated the committee, urging its members to develop a modern and practical VAT framework. He emphasized that this framework must reflect the spirit of the Tax Reform Acts, which represent the most substantial overhaul of Nigeria's tax system in decades. These reforms, effective January 1, 2026, are designed to simplify tax administration, enhance certainty, boost competitiveness, protect vulnerable citizens, and build a stronger foundation for sustainable economic growth.

Oyedele noted that while the previous VAT Modification Order served its purpose, the new legal framework necessitates a fresh Order. This new Order will provide essential clarity, update relevant schedules, and support the effective application of the Nigeria Tax Act. He stressed that the goal is not to replicate old documents but to create a clear, practical, and responsive VAT Order for a dynamic economy. The minister directed the committee to engage extensively with stakeholders, including government bodies, the private sector, and professional organizations, to ensure the final recommendations are balanced and practical.

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.

— Taiwo OyedeleThe Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, explaining the objective of the new VAT Modification Order.
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Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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