FG Launches Committee for 2026 VAT Modification Order

The Federal Government of Nigeria inaugurated an inter-ministerial committee to develop the 2026 Value Added Tax (VAT) Modification Order during a ceremony in Abuja. The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, emphasized the need for a modern VAT framework that aligns with the Tax Reform Acts effective from January 1, 2026.

He described these reforms as the most significant changes to Nigeria's tax system in decades, aimed at simplifying tax administration and fostering economic growth. Oyedele instructed the committee to review the legal framework and administrative practices governing VAT, particularly focusing on VAT-exempt and zero-rated provisions in the Nigeria Tax Act, 2025.

The committee is tasked with engaging stakeholders to ensure the final recommendations are practical and balanced, and to propose a comprehensive schedule of VAT-exempt and zero-rated supplies. The goal is to create a clear and implementable VAT Modification Order that supports investment decisions and provides clearer guidance for tax administrators.