The Federal Government 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 came into effect on January 1, 2026.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele inaugurated the committee on Thursday at the Federal Ministry of Finance headquarters in Abuja, saying the new order is intended to complement the recently enacted tax reforms and strengthen Nigeria’s tax administration.

Speaking at the inauguration, the minister described the Tax Reform Acts as the most comprehensive overhaul of Nigeria’s tax system in decades, noting that the reforms are designed to simplify tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians and promote sustainable economic growth.

He said the committee would not replicate the previous VAT Modification Order, which has been superseded by the new legislation, but would instead produce a modern and forward-looking framework aligned with the country’s economic transformation agenda.

The committee has been mandated to review Nigeria’s existing VAT administration framework, identify areas requiring clarification, engage stakeholders across the public and private sectors, develop comprehensive lists of VAT-exempt and zero-rated goods and services, draft the new VAT Modification Order and recommend legislative amendments where necessary.

According to the minister, the committee’s work should be guided by five principles: fidelity to the law, growth-oriented design, clarity and certainty, broad stakeholder engagement and international benchmarking.

He said the new order should encourage industrialisation, investment, exports, innovation, food security and energy transition while preserving the integrity of the 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 Harmonised System (HS) codes, implementation notes and a stakeholder consultation report.

Membership of the committee includes representatives of the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, the Federal Ministry of Industry, Trade and Investment, the Joint Revenue Board, the Manufacturers Association of Nigeria, the Tax Advisory Committee and the Tax Justice and Governance Platform.

The minister said the committee brings together experts from government and the private sector with the experience needed to deliver an effective VAT framework that supports the implementation of the Tax Reform Acts and advances Nigeria’s economic growth objectives.