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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 2026 to support the implementation of Nigeria’s recently enacted Tax Reform Acts.

According to a statement from the Finance Ministry, the committee, inaugurated on Friday in Abuja, has been given six weeks to produce a modern VAT framework that aligns with the country’s new tax laws, which took effect on January 1, 2026.

According to the Minister, the Tax Reform Acts represent the most comprehensive overhaul of Nigeria’s tax system in decades and are designed to simplify tax administration, improve certainty for businesses, enhance competitiveness, protect vulnerable Nigerians and support long term economic growth.

What they are saying

The Ministry said the previous VAT Modification Order has been superseded by the new legislation, making it necessary to develop a fresh framework rather than update the existing one.

According to the Ministry, the committee’s mandate is to produce “a modern, coherent and forward-looking VAT Modification Order that complements the new law and supports Nigeria’s economic transformation.”

As part of its assignment, the committee will review Nigeria’s existing VAT administration framework, identify areas requiring clarification and engage stakeholders from both the public and private sectors to validate VAT classifications.

It is also expected to develop comprehensive lists of VAT-exempt and zero-rated supplies, taking into account revenue implications and Nigeria’s international obligations, draft an implementable VAT Modification Order and recommend legislative amendments where necessary.

Focus on investment, exports

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

He added that the new VAT Modification Order should support industrialisation, investment, exports, innovation, food security and the country’s energy transition without compromising the integrity of the VAT system.

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

The committee is expected to submit a draft VAT Modification Order 2026, schedules of exempt and zero rated supplies with corresponding Harmonised System (HS) Codes, implementation notes and a stakeholder consultation report at the end of its assignment.

While the specific names of the committee members were not released, the Ministry said the committee comprises representatives from 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.

According to the Ministry the composition of the committee reflects the government’s intention to leverage expertise from both the public and private sectors in developing a VAT framework that supports economic growth while ensuring effective tax administration.

What you should know

President Bola Tinubu signed four tax reform bills into law in June 2025 as part of efforts to overhaul Nigeria’s fiscal and revenue framework.

The signed laws include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill.

The National Assembly passed the bills after months of consultations with stakeholders and interest groups.

The Tax Reform Acts, which came into effect on January 1, 2026, are expected to improve the ease of doing business, strengthen investor confidence and support sustainable economic growth through a modernised tax system.