The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele has inaugurated the Inter-Ministerial Committee on the VAT Modification Order 2026, charging members to develop a modern framework that will support the implementation of Nigeria’s Tax Reform Acts.
A statement explained that the inauguration, held at the Federal Ministry of Finance headquarters in Abuja, marks another step in the implementation of the Tax Reform Acts, which came into effect on January 1, 2026.
Speaking at the event, the Minister described the Tax Reform Acts as the most comprehensive reform of Nigeria’s tax system in decades, noting that they simplify tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians, and position the economy for sustainable growth.
He explained that while the previous VAT Modification Order had been superseded by the new legislation, the Committee’s responsibility was not to recreate the old framework but to develop a modern, coherent and forward-looking VAT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.
The Committee has been mandated to review the existing VAT administration framework and identify areas requiring clarification, engage 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.
The Minister urged members to be guided by five key principles in carrying out their assignment: fidelity to the law, growth-oriented design, clarity and certainty, broad stakeholder engagement, and international benchmarking.
According to him, the new Order should promote industrialisation, investment, exports, innovation, food security and energy transition without undermining 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 HS Codes, implementation notes, 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 on its mandate, noting that its membership brings together extensive knowledge, expertise and experience from both the public and private sectors.
The Tax Reform Acts, which took effect on January 1, 2026, represent Nigeria’s most significant overhaul of its tax system in decades, aimed at improving the ease of doing business, boosting investor confidence and supporting sustainable economic growth.
