Oyedele launches committee to reshape Nigeria’s VAT system

The Federal Government has inaugurated an inter-ministerial committee to prepare the 2026 Value Added Tax (VAT) Modification Order as part of efforts to implement Nigeria’s new tax laws.

The committee, chaired by the Permanent Secretary of the Ministry of Finance, Raymond Omachi, was inaugurated in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

According to a statement by the ministry’s Head of Information and Public Relations, Efe Ovuakporie, the committee will align the new VAT Order with the Nigeria Tax Act, 2025, which replaced the previous VAT law.

Oyedele said the assignment would “provide greater certainty for businesses, investors and tax administrators,” adding that it was vital to the successful implementation of the Tax Reform Acts, which took effect on 1 January 2026.

He stressed that the new document must go beyond updating the previous order.

“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.

The minister directed the committee to review VAT administration, engage key stakeholders and recommend updated lists of VAT-exempt and zero-rated supplies. It is expected to submit its report, including a draft Order and any proposed legislative amendments, within six weeks.

Urging members to deliver a practical framework, Oyedele said: “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.”