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 aimed at supporting the implementation of Nigeria’s Tax Reform Acts.
The committee was inaugurated on Friday at the Federal Ministry of Finance headquarters in Abuja and has been given six weeks to prepare a draft VAT Modification Order 2026 and other implementation documents.
According to the Ministry of Finance, the committee will review Nigeria’s existing VAT administration framework, identify areas requiring clarification, engage stakeholders from both the public and private sectors, and develop comprehensive lists of VAT-exempt and zero-rated goods and services. It is also expected to recommend legislative amendments where necessary.
Speaking during the inauguration, the minister described the Tax Reform Acts, which took effect on January 1, 2026, as the most comprehensive overhaul of Nigeria’s tax system in decades. He said the reforms are intended to simplify tax laws, improve certainty for taxpayers, enhance competitiveness, protect vulnerable Nigerians, and support sustainable economic growth.
He noted that while the previous VAT Modification Order has been replaced by the new tax legislation, the committee’s responsibility is to develop a modern framework that aligns with the new legal regime rather than replicate the old order.
The minister said the committee’s work should promote industrialisation, investment, exports, innovation, food security, and the country’s energy transition while maintaining the integrity of the VAT system.
To guide its assignment, the committee has been directed to adhere to five key principles: compliance with the law, a growth-orientated approach, clarity and certainty in tax administration, broad stakeholder engagement, and alignment with international best practices.
The committee comprises representatives from the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, the Federal Ministry of Industry, Trade and Investment, the Joint Revenue Board, the Manufacturers Association of Nigeria, the Tax Advisory Committee, and the Tax Justice and Governance Platform.
The ministry said the committee is expected to submit a draft VAT Modification Order 2026, schedules of VAT-exempt and zero-rated supplies with their corresponding HS codes, implementation notes, and a report on stakeholder consultations within six weeks.
