The Minister of Finance and Coordinating Minister of the Economy has inaugurated an inter-ministerial committee to develop a new Value Added Tax (VAT) Modification Order in line with Nigeria’s Tax Reform Acts, which took effect on January 1, 2026.
Speaking at the inauguration in Abuja, the minister described the Tax Reform Acts as “the most comprehensive reform of Nigeria’s tax system in decades,” saying they are designed to simplify tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians, and support sustainable economic growth.
He said the committee’s assignment is not to recreate the previous VAT Modification Order, which has been replaced by the new legislation.
“Instead, it must develop a modern, coherent, and forward-looking VAT Modification Order that complements the new law and supports Nigeria’s economic transformation,” the minister said.
The committee has been tasked with reviewing Nigeria’s VAT administration framework, consulting public and private sector stakeholders, developing updated lists of VAT-exempt and zero-rated supplies, drafting a new VAT Modification Order, and recommending legislative amendments where necessary.
The minister said the committee’s work should be guided by the principles of legal compliance, clarity, stakeholder engagement, economic growth, and international best practices.
“This Order should promote industrialisation, investment, exports, innovation, food security, and energy transition, without undermining the integrity of the VAT system,” he said.
The committee has six weeks to complete its assignment and submit a draft VAT Modification Order 2026, schedules of VAT-exempt and zero-rated supplies with their corresponding HS Codes, implementation notes, and a stakeholder consultation report.
Its members include 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.
According to the minister, the committee’s composition reflects the expertise required to deliver an effective framework.
“The membership of this Committee brings together deep knowledge, expertise, and experience from across government and the private sector,” he said.
The Tax Reform Acts came into effect on January 1, 2026, and are intended to improve tax administration, enhance the ease of doing business, boost investor confidence, and support long-term economic growth.