The Federal Government 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, which took effect on January 1, 2026.
The committee was inaugurated by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, at the Federal Ministry of Finance headquarters in Abuja on Friday.
According to the minister, the new VAT Modification Order will align with the recently enacted tax laws and support the government’s broader economic reform agenda.
“The Tax Reform Acts represent the most comprehensive reform of Nigeria’s tax system in decades,” Oyedele said at the inauguration ceremony. “They simplify our tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians, and position our economy for sustainable growth.”
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He said the committee’s responsibility is not to reproduce the previous VAT Modification Order, which the new legislation has replaced, but to develop a new framework that reflects the objectives of the tax reforms.
He stressed that the committee must 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 tasked with reviewing Nigeria’s VAT administration framework, identifying areas requiring clarification, consulting stakeholders across the public and private sectors, preparing comprehensive lists of VAT-exempt and zero-rated goods and services, drafting the new VAT Modification Order and recommending legislative amendments where necessary.
The minister said the committee’s work would be guided by five principles: compliance with the law, support for economic growth, clarity and certainty, broad stakeholder engagement and alignment with international best practices.
“This Order should promote industrialisation, investment, exports, innovation, food security, and energy transition, without undermining the integrity of the VAT system,” Oyedele stated.
The committee has been given six weeks to complete its assignment and submit a draft VAT Modification Order 2026, schedules of exempt and zero-rated supplies with corresponding HS Codes, implementation notes and a stakeholder consultation report.
Its membership 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 membership of this Committee brings together deep knowledge, expertise, and experience from across government and the private sector,” the Minister noted.
Pinnacle Daily reports that the Tax Reform Acts, which came into effect on January 1, 2026, represent Nigeria’s most significant overhaul of its tax system in decades and are intended to improve the ease of doing business, strengthen investor confidence and support sustainable economic growth.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X