Nigeria’s Federal Government Establishes Committee for VAT Amendment Order 2026
The Federal Government of Nigeria has formed an inter-ministerial committee aimed at crafting the Value Added Tax (VAT) Amendment Order 2026. This initiative is a significant move toward implementing the country’s new tax legislation and fostering greater certainty for businesses, investors, and tax authorities.
The committee’s primary responsibility is to propose a detailed schedule for VAT exemptions and zero-rated supplies. In doing so, it will consider various factors, including revenue projections, social implications, Nigeria’s international treaty obligations, and regional integration goals. The Minister of Finance and Coordinating Minister for the Economy, Mr. Taiwo Oyedele, announced the committee’s formation during a ceremony at the Prime Minister’s Office. He urged members to develop a modern VAT framework that aligns with the objectives of the Tax Reform Act and addresses current economic challenges.
Mr. Oyedele characterized the Tax Reform Act, which took effect on January 1, 2026, as one of the most transformative changes in Nigeria’s tax landscape in decades. He emphasized that these reforms aim to simplify tax administration, enhance clarity, boost competitiveness, protect vulnerable populations, and establish a sustainable economic foundation. He noted that while the prior VAT Amendment Order under the repealed VAT Act served its purpose, a new legal framework is crucial for ensuring clear updates and supporting the effective implementation of Nigeria’s tax legislation.
Highlighting the importance of this initiative, Mr. Oyedele stated that the goal is to produce a VAT Order that is both practical and reflective of the evolving economic environment. He emphasized that the committee’s task is not merely to reproduce outdated documents but to create a forward-thinking directive.
The Minister further indicated that the new order aims to eliminate uncertainty, streamline compliance for taxpayers, assist investment decisions, and provide clearer guidance for tax administrators. He instructed the committee to conduct an extensive review of the legal framework, administrative practices, and policy guidelines affecting VAT administration, particularly concerning exemptions and zero-rated entities as outlined in the Nigerian Tax Act of 2025.
Moreover, Mr. Oyedele called upon committee members to engage with a wide range of stakeholders, including government entities, the organized private sector, and professional associations, to validate classifications and address potential implementation challenges. This collaborative approach aims to ensure that final recommendations are both practical and balanced.
The committee has been tasked with drafting a comprehensive schedule for VAT exemptions and zero-rate provisions, keeping in mind revenue implications, social effects, and commitments under international treaties. Additionally, the committee will develop a detailed VAT amendment order aligned with Nigeria’s Tax Act and suggest legislative amendments necessary for strengthening implementation.
Insisting on the urgency of their mission, Mr. Oyedele expressed confidence in the committee’s expertise, underscoring that the combination of government and private sector knowledge would yield effective strategies for managing VAT under the new tax structure. He concluded by stressing the pressing necessity for businesses to have certainty, for investors to feel confident, and for a VAT system that facilitates easy administration and promotes growth. The committee has six weeks to finalize its draft amendment order, establish exemption schedules, and recommend necessary legislative changes.
