Udoma, who spoke before a Senate committee on finance on Tuesday the VAT rate review is one of the options being considered by the government go forward.
He also hinted that the government may soon bring before the parliament an executive bill seeking an amendment to the tax law as soon as the national minimum wage is approved by the National Assembly.
Africa's biggest economy currently charges a 5 percent VAT rate on all goods and services, a rate considered as the lowest in the continent.
The parliament is currently considering approving a minimum wage of 30,000 naira for the nation's workforce before it could become effective across all sectors of the economy.
The minister also informed the Senate committee that the Technical Advisory Committee on the minimum wage will submit its report to President Muhammadu Buhari this week.
He considered the current minimum wage of 18,000 naira too little for workers in the country in the face of present economic reality.
“The President supported a review, but it is important that as we are revising it, we should be able to fund it.
“It is in the light of this that we would be coming to you (Senate) because there may be the need to make some changes, especially the VAT, in order to fund the minimum wage once it is announced.”
He also said efforts were on, too, to ensure that capital projects and other sectors of the economy are adequately funded.
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