FG inaugurates committee to draft 2026 VAT order, gives six-week deadline
The Federal Government has inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax (VAT) Modification Order, a move aimed at facilitating the implementation of Nigeria’s new tax laws and providing greater certainty for businesses, investors and tax administrators.
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, inaugurated the committee on Friday in Abuja, charging members to produce a practical VAT framework that aligns with the provisions of the Nigeria Tax Act, 2025.
Oyedele described the Tax Reform Acts, which took effect on January 1, 2026, as the most significant overhaul of Nigeria’s tax system in decades, saying the reforms were designed to simplify tax administration, improve compliance, strengthen competitiveness and support economic growth.
He said the previous VAT Modification Order, issued under the repealed VAT Act, could no longer adequately support the new legal framework.
“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,” the minister said.
According to him, the new order should eliminate uncertainty, make tax compliance easier, guide tax administrators and give investors greater confidence.
The minister directed the committee to review the legal and administrative framework governing VAT, with particular attention to the VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.
He also asked members to consult widely with government agencies, the organised private sector, professional bodies and other stakeholders to ensure the final recommendations are balanced and practical.
