The federal government has inaugurated an inter-ministerial committee to develop a new Value Added Tax (VAT) modification order within six weeks, as part of efforts to implement Nigeria’s new tax laws.
Minister of finance and coordinating minister of the economy, Taiwo Oyedele, inaugurated the committee on Friday, July 24, in Abuja.
In a statement on Saturday, July 25, Efe Ovuakporie, head of information and public relations at the ministry, said the committee would develop a new VAT framework to provide greater certainty for businesses, investors and tax administrators.
Oyedele said the committee’s work would reflect the objectives of the tax reform acts, which took effect on January 1, while responding to the realities of the Nigerian economy.
He described the legislation as the most extensive changes to Nigeria’s tax system in decades, saying it was designed to simplify tax administration, improve certainty, enhance competitiveness, protect vulnerable Nigerians and support sustainable economic growth.
The minister said the previous VAT modification order, issued under the repealed VAT act, had served its purpose, adding that the new legal framework required a fresh order to provide clarity, update relevant schedules and support effective implementation of the Nigeria tax act.
“This is not about reproducing an old document,” Oyedele said.
“It is about developing a VAT modification order that is clear, practical and responsive to the needs of a changing economy.”
He said the new order should reduce uncertainty, simplify tax compliance, support investment decisions and provide tax administrators with clearer guidance.
Oyedele directed the committee to review 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.
The committee is also expected to engage stakeholders across government, the organised private sector, professional bodies and other interest groups to validate classifications and address implementation concerns.
The minister further directed the panel 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.
The committee is expected to prepare a clear and implementable VAT modification order aligned with the Nigeria tax act and, where necessary, recommend amendments to the tax reform acts and other enabling laws.
Oyedele urged the committee to ensure that its recommendations promote industrial growth, support investment, encourage exports, strengthen food security, foster innovation and facilitate Nigeria’s energy transition without undermining the integrity of the VAT system.
The committee has six weeks to submit a draft VAT modification order, schedules of VAT-exempt and zero-rated supplies with corresponding harmonised system codes, implementation notes, a stakeholder consultation report and recommendations on any necessary legislative amendments.
Its membership 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.
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