Finance Minister Inaugurates Committee to Draft New VAT Modification Order

The federal government has inaugurated an Inter-Ministerial Committee to develop a new Value Added Tax (VAT) Modification Order 2026 as part of efforts to support the implementation of the Tax Reform Acts that came into effect on January 1, 2026.

Speaking during the inauguration of the committee at the Federal Ministry of Finance headquarters in Abuja on Friday, the Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele said the assignment was aimed at providing a modern framework that aligns with Nigeria’s new tax regime and supports the country’s economic transformation.

Describing the Tax Reform Acts as the most comprehensive overhaul of Nigeria’s tax system in decades, the minister said the reforms were designed to simplify tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians and drive sustainable economic growth.

“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,” the minister said.

He explained that although the previous VAT Modification Order had been superseded by the new legislation, the committee was not expected to reproduce the old framework but to develop “a modern, coherent, and forward-looking VAT Modification Order that complements the new law and supports Nigeria’s economic transformation.”

According to the minister, the committee will review Nigeria’s existing VAT administration framework to identify areas requiring clarification, engage public and private sector stakeholders to validate classifications and ensure alignment with economic and social objectives, develop comprehensive lists of VAT-exempt and zero-rated supplies while considering revenue implications and international obligations, draft a clear and implementable VAT Modification Order, and recommend legislative amendments where necessary.

He further outlined five guiding principles for the committee’s work, including fidelity to the law, growth-oriented design, clarity and certainty, broad stakeholder engagement and international benchmarking.

“This Order should promote industrialisation, investment, exports, innovation, food security, and energy transition, without undermining the integrity of the VAT system,” the minister stated.

The committee has been given a maximum of six weeks to complete its assignment and submit a Draft VAT Modification Order 2026 alongside schedules of VAT-exempt and zero-rated supplies with corresponding Harmonised System (HS) Codes, implementation notes and a stakeholder consultation report.

Its membership comprises representatives of the Federal Ministry of Finance, Nigeria Revenue Service, Nigeria Customs Service, Federal Ministry of Industry, Trade and Investment, Joint Revenue Board, Manufacturers Association of Nigeria, Tax Advisory Committee and the Tax Justice and Governance Platform.

“The membership of this Committee brings together deep knowledge, expertise, and experience from across government and the private sector,” the minister added.

The Tax Reform Acts, which took effect on January 1, 2026, are expected to improve the ease of doing business, strengthen investor confidence and provide a more efficient tax framework to support Nigeria’s long-term economic growth.