The Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, has inaugurated the Inter-Ministerial Committee on the VAT Modification Order 2026 in Abuja.
Inaugurated on Friday, the Committee is tasked with developing a new Value Added Tax (VAT) Modification Order to support the implementation of Nigeria’s Tax Reform Acts, which came into effect on 1 January 2026.
“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”, Oyedele said in a statement shared via his official X handle.
While the previous VAT Modification Order has been superseded by the new legislation, the Minister emphasised that the Committee’s assignment is not to recreate the old framework. 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 terms of reference given to Committee include, to review Nigeria’s existing VAT administration framework and 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, considering revenue implications and international obligations, draft a clear, implementable VAT Modification Order and recommend
legislative amendments where necessary.
The Minister outlined five key principles to guide the Committee’s work: 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 a maximum of six weeks to complete its assignment and submit deliverables including the Draft VAT Modification Order 2026, schedules of exempt and zero-rated supplies with corresponding HS Codes, implementation notes, and a stakeholder consultation report.
The Committee comprises representatives from 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 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 noted.
The Tax Reform Acts, which came into effect on 1 January 2026, represent Nigeria’s most significant tax system overhaul in decades, designed to improve the ease of doing business, enhance investor confidence, and support sustainable economic growth.
