BY CHIKA OKEKE, Abuja
Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele has insisted that the Tax Reform Acts, which came into effect on 1 January 2026, will strengthen competitiveness, protect vulnerable Nigerians and create a stronger foundation for sustainable economic growth.
Oyedele who stated this at the inauguration of Inter Ministerial Committee on 2026 VAT Modification Order over the weekend in Abuja, described the reforms as the most extensive changes to Nigeria's tax system in decades.
He enjoined the committee to deliver a modern and practical VAT framework that reflects the intent of the Tax Reform Acts and responds to the realities of today's economy.
The Minister described the committee as a major step towards ensuring the smooth implementation of Nigeria's new tax laws and providing greater certainty for businesses, investors and tax administrators.
He stated that while the previous VAT Modification Order made under the repealed VAT Act had served its purpose, the new legal framework requires a fresh Order to provide clarity, update relevant schedules and support the effective implementation of the Nigeria Tax Act.
"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,” he said.
The Minister disclosed that the new Order should remove uncertainty, make compliance easier for taxpayers, support investment decisions and provide tax administrators with clearer guidance in implementing the law.
To this end, he directed the Committee to undertake a thorough review of the legal framework, administrative practices and policy directives governing VAT administration, particularly the VAT exempt and zero-rated provisions contained in Part IV of the Nigeria Tax Act, 2025, while identifying areas that require further clarification.
He charged members to engage extensively with stakeholders across the government, the organised private sector, professional bodies and other interest groups to validate classifications, address implementation concerns and ensure that the final recommendations are practical and balanced.
Oyedele 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 clear and implementable VAT Modification Order that aligns with the provisions of the Nigeria Tax Act and, where necessary, recommend amendments to the Tax Reform Acts and other enabling laws to strengthen implementation.
The Minister tasked members to ensure that every recommendation remains faithful to both the letter and the spirit of the new tax laws, saying that the Order should encourage industrial growth, support investment, promote exports, strengthen food security, encourage innovation and facilitate Nigeria's energy transition without compromising the integrity of the VAT system.
He harped on the need to reduce ambiguity in VAT administration so that taxpayers, investors, regulators and tax administrators can operate with greater confidence and certainty.
Oyedele encouraged the Committee to draw from international experience while ensuring that the final document reflects 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, Nigeria Revenue Service, Nigeria Customs Service, Federal Ministry of Industry, Trade and Investment, Joint Revenue Board, Manufacturers Association of Nigeria, Tax Advisory Committee and Tax Justice and Governance Platform.
The Minister was optimistic that the Committee, drawn from government and the private sector, will provide a strong foundation for producing a technically sound and practical instrument that will support the effective administration of VAT under the new tax regime.
"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 added.
The Committee's work is expected to transform one of Nigeria's most important taxes, improve the ease of doing business, strengthen investor confidence and support the successful implementation of the Federal Government's fiscal reform agenda.
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