The Honourable Minister of Finance and Coordinating Minister of the Economy has inaugurated an Inter-Ministerial Committee on the VAT Modification Order 2026 to develop a new framework for implementing Nigeria’s Tax Reform Acts, which took effect on January 1, 2026.
The inauguration, held at the Federal Ministry of Finance headquarters in Abuja, marks another step in the implementation of the country’s comprehensive tax reforms aimed at strengthening the economy and improving the business environment.
Speaking at the event, the Minister described the Tax Reform Acts as the most far-reaching overhaul of Nigeria’s tax system in decades, saying the reforms simplify tax laws, provide greater certainty, enhance competitiveness, protect vulnerable citizens, and position the economy for sustainable growth.
He explained that although the previous VAT Modification Order has been replaced by the new legislation, the Committee’s responsibility is not to reproduce the old framework but to develop a modern, coherent, and forward-looking VAT Modification Order that aligns with the new law and supports Nigeria’s economic transformation.
According to the Minister, the Committee will review the existing VAT administration framework, identify areas requiring clarification, engage key stakeholders from both the public and private sectors, develop comprehensive lists of VAT-exempt and zero-rated supplies, draft a clear and implementable VAT Modification Order, and recommend legislative amendments where necessary.
He further outlined five guiding principles for the Committee’s assignment, including strict adherence to the law, promoting economic growth, ensuring clarity and certainty, broad stakeholder engagement, and aligning with international best practices.
The Minister stressed that the new VAT Modification Order should encourage industrialisation, investment, exports, innovation, food security, and energy transition while preserving the integrity of Nigeria’s VAT system.
The Committee has been given six weeks to complete its assignment and submit a Draft VAT Modification Order 2026, schedules of VAT-exempt and zero-rated supplies with corresponding Harmonised System (HS) Codes, implementation guidelines, and a stakeholder consultation report.
Membership of the Committee includes 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 Minister expressed confidence in the Committee’s capacity to deliver, noting that its members bring together extensive knowledge, expertise, and experience from both the public and private sectors.
The Tax Reform Acts, which came into force on January 1, 2026, are expected to improve the ease of doing business, boost investor confidence, and drive sustainable economic growth through a more efficient and transparent tax system.
