Baby products, sanitary pads, 32 other products now VAT free as Tinubu signs Tax Act

Sanitary pads, land, energy exports, baby products, and assistive devices are among several items now exempted from Nigeria’s 7.5 per cent Value-Added Tax (VAT), according to the newly enacted Nigeria Tax Act.

Signed into law by President Bola Tinubu on June 26 as part of a wider tax reform package, the legislation introduces sweeping changes to the VAT regime. It will take effect on January 1, 2026, under the supervision of a new body — the Nigeria Revenue Service (NRS).

A copy of the law, seen by TheCable, lists 15 categories of supplies completely exempt from VAT, including crude oil exports, military hardware, shared transport services, agricultural equipment, and locally produced sanitary products like pads and tampons.

In addition, 19 items are to be taxed at a zero per cent VAT rate, such as basic food items, pharmaceutical products, exported goods and services, electricity supply from GENCOs to DISCOs, and electric vehicles and their parts.

The act also incorporates the October 2024 VAT modification order, which excluded VAT on key energy products like diesel, CNG, LPG, LNG infrastructure, and clean cooking equipment.

“Charging and collection of VAT on the following items shall commence on the date indicated by the Minister, or suspended where it is expedient to do so in the public interest, by an order issued in the Official Gazette,” the law states.

It further notes that other items related to renewable energy and gas infrastructure may also be exempted “by an order issued by the minister in the official gazette.”