Finance Minister Inaugurates Committee To Develop New VAT Modification Order

The Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele, has inaugurated an Inter-Ministerial Committee to develop a new Value Added Tax (VAT) Modification Order to support the implementation of Nigeria’s Tax Reform Acts, which took effect on January 1, 2026.

The inauguration took place on Friday at the Federal Ministry of Finance headquarters in Abuja, according to a statement issued by the Federal Ministry of Finance.

The ministry said the committee is expected to produce a modern VAT Modification Order that aligns with the new tax regime and supports the Federal Government’s economic reform agenda.

Speaking at the inauguration, the minister described the Tax Reform Acts as a landmark overhaul of Nigeria’s tax system.

He said, “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.”

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According to the statement, the previous VAT Modification Order has been overtaken by the new legislation, making it necessary to develop a fresh framework that reflects the provisions of the Tax Reform Acts.

The minister stressed that the committee’s responsibility goes beyond replacing the old order.

He said the assignment is 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 directed to review Nigeria’s VAT administration framework, engage stakeholders from both the public and private sectors, develop comprehensive lists of VAT-exempt and zero-rated supplies, draft a new VAT Modification Order and recommend legislative amendments where necessary.

The minister also outlined five guiding principles for the committee’s work, including fidelity to the law, growth-oriented design, clarity and certainty, broad stakeholder engagement and international benchmarking.

He added, “This Order should promote industrialisation, investment, exports, innovation, food security, and energy transition, without undermining the integrity of the VAT system.”

The ministry said the committee has six weeks to complete its assignment and submit a draft VAT Modification Order 2026, schedules of VAT-exempt and zero-rated supplies with corresponding Harmonised System (HS) Codes, implementation notes and a stakeholder consultation report.

Membership of the committee comprises 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.

Highlighting the composition of the committee, the minister said, “The membership of this Committee brings together deep knowledge, expertise, and experience from across government and the private sector.”

The Federal Ministry of Finance noted that the Tax Reform Acts, which came into force on January 1, 2026, represent Nigeria’s most significant tax reform in decades and are aimed at improving the ease of doing business, boosting investor confidence and supporting sustainable economic growth.