Nigeria sets six-week deadline for 2026 VAT framework
Nigeria has formed an inter-ministerial committee to draft a new Value Added Tax framework within six weeks, a crucial step in implementing sweeping tax reforms designed to boost business certainty and attract investment.
Nigeria’s Finance Minister Taiwo Oyedele has inaugurated an inter-ministerial committee tasked with drafting a new Value Added Tax framework, giving the body six weeks to deliver the VAT Modification Order 2026.
The move operationalises the Tax Reform Acts, which President Bola Tinubu signed into law in June 2025 and which took effect on January 1, 2026. Because the new legislation completely superseded the previous VAT order, the government must build a fresh administrative framework rather than simply updating existing rules.
For investors and corporates operating in Africa's largest economy, the committee's work carries direct implications for tax planning and supply chain costs. The finance ministry has explicitly mandated the group to produce a document that improves certainty for businesses and enhances Nigeria's overall competitiveness.
“The Tax Reform Acts represent the most comprehensive reform of Nigeria’s tax system in decades. They simplify our tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians and position our economy for sustainable growth,” Oyedele said.
The committee's core technical assignment involves developing precise lists of VAT-exempt and zero-rated supplies mapped to Harmonised System codes. This classification work is critical for manufacturers and exporters, as it will dictate the exact tax treatment of goods across various sectors.
Membership spans both public and private sectors, including the Nigeria Revenue Service, Nigeria Customs Service, and the Manufacturers Association of Nigeria. The inclusion of industry groups signals an effort to ensure the final order is practically implementable rather than purely theoretical.
Oyedele outlined five guiding principles for the draft: fidelity to the law, growth-oriented design, clarity, broad engagement and international benchmarking. He stressed that the resulting framework must actively support key economic drivers.
At the end of its six-week mandate, the committee is expected to submit the draft order, the exempt and zero-rated supply schedules, implementation notes, and a report on stakeholder consultations. The resulting document will dictate how Nigeria enforces its most significant fiscal overhaul in a generation.
