Oyedele sets up new VAT Modification Order C’ttee

Emma Ujah, Abuja Bureau Chief

ABUJA — The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has inaugurated an Inter-Ministerial Committee to develop the 2026 Value Added Tax (VAT) Modification Order.

The Ministry’s Head , Information and Public Relations, Efe Ovuakporie, in a statement, this morning said the committee was Inaugurated in Abuja, on Friday, in a move aimed at ensuring the effective implementation of Nigeria’s new tax laws.

Mr. Oyedele was quoted as saying the committee’s work would “provide greater certainty for businesses, investors and tax administrators,” and thst the assignment was critical to the successful implementation of the Tax Reform Acts, which came into effect on January 1, 2026.

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

The minister described the reforms as the most far-reaching overhaul of Nigeria’s tax system in decades, noting that they were designed to simplify tax administration, improve certainty, enhance the country’s competitiveness, protect vulnerable Nigerians and lay a stronger foundation for sustainable economic growth.

According to him, the previous VAT Modification Order, which was issued under the now repealed VAT Act, had served its purpose, but a new Order had become necessary to align with the provisions of the Nigeria Tax Act, 2025.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,” Oyedele said.

He explained that the new Order should eliminate ambiguity, simplify compliance for taxpayers, support investment decisions and provide tax administrators with clearer guidance for implementing the law.

The Minister directed the committee to undertake a comprehensive review of the legal framework, administrative practices and policy directives governing VAT administration, with particular attention to VAT-exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025.
He tasked members with identifying areas requiring further clarification and engaging extensively with stakeholders across government, the organised private sector, professional bodies and other interest groups to validate classifications and resolve implementation concerns.

Oyedele also instructed 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.
In addition, the committee is expected to prepare a practical VAT Modification Order that aligns with the provisions of the Nigeria Tax Act and recommend amendments to the Tax Reform Acts and other enabling laws where necessary to strengthen implementation.
The Minister urged members to ensure that their recommendations remained faithful to both the letter and spirit of the new tax laws, adding that the Order should promote industrial growth, attract investment, encourage exports, strengthen food security, foster innovation and support Nigeria’s energy transition without undermining the integrity of the VAT system.
He stressed the need to reduce uncertainty in VAT administration to enable taxpayers, investors, regulators and tax authorities to operate with greater confidence.
Oyedele further advised the committee to draw from global best practices while ensuring that the final document reflected Nigeria’s unique economic realities and development priorities.
The committee has been given 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 legislative amendments considered necessary.
Membership of the committee comprises 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’s capacity, Oyedele said the mix of expertise from the public and private sectors would ensure the production of a technically sound and practical instrument capable of supporting efficient VAT administration under the country’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.
He 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.
END

The post Oyedele sets up new VAT Modification Order C’ttee appeared first on Vanguard News.