Finance Minister Sets Up Committee to Draft New VAT Order Under Tax Reforms

The Minister of Finance and Coordinating Minister of the Economy has inaugurated an inter-ministerial committee to develop a new Value Added Tax (VAT) Modification Order as part of the implementation of Nigeria's Tax Reform Acts.

The committee was inaugurated on Friday at the Federal Ministry of Finance headquarters in Abuja.

It has been given six weeks to prepare a draft VAT Modification Order 2026 and other documents needed to support the country's new tax system, which took effect on 1st January 2026.

Speaking at the inauguration, the minister described the new laws as "the most comprehensive reform of Nigeria's tax system in decades."

He said the reforms "simplify our tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians, and position our economy for sustainable growth."

He explained that although the previous VAT Modification Order has been replaced by the new legislation, the committee's task is not to recreate it.

Instead, it must develop "a modern, coherent, and forward-looking VAT Modification Order that complements the new law and supports Nigeria's economic transformation."

According to the minister, the committee will review the country's VAT administration, consult public and private sector stakeholders, prepare updated lists of VAT-exempt and zero-rated goods and services, draft a new VAT Modification Order and recommend legislative changes where necessary.

He also said the committee's work should follow five principles: fidelity to the law, growth-oriented design, clarity and certainty, broad stakeholder engagement and international benchmarking.

"This Order should promote industrialisation, investment, exports, innovation, food security, and energy transition, without undermining the integrity of the VAT system," the minister said.

The committee includes 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.

"The membership of this Committee brings together deep knowledge, expertise, and experience from across government and the private sector," the minister said.