The Federal Government has inaugurated an Inter-Ministerial Committee to prepare a new Value Added Tax (VAT) Modification Order that will guide the implementation of Nigeria’s recently enacted Tax Reform Acts.

The committee, inaugurated by the Minister of Finance and Coordinating Minister of the Economy Mr Taiwo Oyedele at the Federal Ministry of Finance headquarters in Abuja, has been given six weeks to complete its assignment and submit recommendations expected to shape the country’s new VAT framework.

Speaking during the inauguration, the minister said the Tax Reform Acts, which came into force on January 1, 2026, mark the most far-reaching changes to Nigeria’s tax system in several decades.

He said the reforms are designed to make tax administration simpler, create greater certainty for businesses and investors, improve Nigeria’s competitiveness, protect low-income citizens and support long-term economic growth.

According to him, the work of the committee is to ensure that the new VAT Modification Order fits into the new legal framework created by the Tax Reform Acts instead of reproducing the previous order that has now been replaced.

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.

He added that the committee had been asked to produce “a modern, coherent, and forward-looking VAT Modification Order that complements the new law and supports Nigeria’s economic transformation.”

Oyedele said the committee would review the current VAT administration system to identify areas that require clarification under the new tax regime. It will also consult widely with stakeholders from both the public and private sectors to ensure that the proposed VAT classifications reflect the country’s economic and social priorities.

Its responsibilities also include preparing comprehensive schedules of VAT-exempt and zero-rated goods and services, while considering the possible impact on government revenue and Nigeria’s international commitments. The committee is equally expected to draft a practical VAT Modification Order and recommend changes to existing legislation where necessary to improve implementation.

The Minister said the committee’s work should be guided by strict compliance with the law, policies that encourage economic growth, clear rules that reduce uncertainty, broad consultations with stakeholders and the adoption of international best practices.

He said the new VAT framework should encourage industrial development, attract investment, promote exports, support innovation, strengthen food security and contribute to Nigeria’s transition to cleaner sources of energy without weakening the country’s VAT system.

“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 alongside detailed schedules of VAT-exempt and zero-rated supplies with their corresponding Harmonised System (HS) Codes. It will also prepare implementation notes and a report on consultations held with stakeholders during the assignment.

Members of the committee were drawn from major government agencies and private sector organisations, including 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 expressed confidence in the committee’s ability to deliver its assignment, saying its membership combines extensive knowledge and experience from both the public and private sectors.

The Federal Government believes the Tax Reform Acts, which took effect at the beginning of this year, will improve the ease of doing business, strengthen investor confidence and provide a stronger foundation for sustainable economic growth by creating a more efficient and predictable tax system. (The Nation)

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