Abuja, July 24, 2026– The Federal Government has inaugurated an Inter-Ministerial Committee to develop the Value Added Tax (VAT) Modification Order 2026, a key instrument to support the implementation of Nigeria's newly enacted Tax Reform Acts.
The committee was inaugurated on Friday in Abuja by the Honourable Minister of Finance and Coordinating Minister of the Economy at the Federal Ministry of Finance headquarters.
Speaking during the inauguration, the Minister described the Tax Reform Acts, which came into effect on January 1, 2026, as the most comprehensive overhaul of Nigeria's tax system in decades. According to him, the reforms are designed to simplify tax administration, improve legal certainty, enhance Nigeria's competitiveness, protect vulnerable citizens, and stimulate sustainable economic growth.
He explained that although the previous VAT Modification Order has been overtaken by the new tax 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 objectives of the new tax regime.
The committee has been mandated to review the current VAT administration framework, identify areas requiring clarification, engage stakeholders across the public and private sectors, develop comprehensive schedules of VAT-exempt and zero-rated goods and services, draft the new VAT Modification Order, and recommend any legislative amendments considered necessary.
The Minister directed members to be guided by five key principles: strict adherence to the provisions of the new law, promotion of economic growth, clarity and certainty in tax administration, extensive stakeholder engagement, and alignment with international best practices.
He emphasized that the new VAT framework 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 exempt and zero-rated supplies with their corresponding Harmonized System (HS) Codes, implementation guidelines, and a comprehensive stakeholder consultation report.
Membership of the committee cuts across key public and private sector institutions, including 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 (MAN), Tax Advisory Committee, and the Tax Justice and Governance Platform.
The Minister expressed confidence that the diverse expertise represented on the committee would produce a VAT framework that supports Nigeria's ongoing economic reforms and strengthens the country's investment climate.
The Tax Reform Acts, effective from January 1, 2026, are expected to improve the ease of doing business, boost investor confidence, modernise tax administration, and provide a stronger foundation for sustainable economic development.