- Says VAT Order Must Drive Economic Growth Without Weakening Tax System
- Sets Six-Week Deadline For New Tax Order
The Federal Government has intensified implementation of Nigeria’s sweeping tax reforms with the inauguration of an Inter-Ministerial Committee to draft a new Value Added Tax (VAT) Modification Order 2026, giving the panel just six weeks to deliver a framework expected to reshape VAT administration and boost economic growth.
The committee was inaugurated on Friday in Abuja by the Minister of Finance and Coordinating Minister of the Economy at the Federal Ministry of Finance headquarters.
Speaking at the ceremony, the minister described the Tax Reform Acts, which took effect on January 1, 2026, as the most far-reaching overhaul of Nigeria’s tax system in decades, saying they are designed to simplify tax administration, improve investor confidence and drive sustainable economic growth.
“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.
The minister stressed that the committee’s mandate goes beyond replacing the previous VAT Modification Order, insisting that members must produce a framework that aligns with the new tax regime.
“The committee’s assignment is not to recreate the old framework. Instead, it must develop a modern, coherent, and forward-looking VAT Modification Order that complements the new law and supports Nigeria’s economic transformation,” the minister stated.
According to the minister, the committee will review the country’s VAT administration framework, engage stakeholders across the public and private sectors, develop comprehensive lists of VAT-exempt and zero-rated goods and services, draft a new VAT Modification Order and recommend legislative amendments where necessary.
The minister further directed the committee to ensure that its recommendations support industrialisation, investment, exports, innovation, food security and Nigeria’s energy transition while safeguarding the integrity of the VAT system.
“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 has been given a maximum of six weeks to submit the Draft VAT Modification Order 2026, schedules of VAT-exempt and zero-rated supplies with corresponding HS Codes, implementation guidelines and a stakeholder consultation report.
The panel comprises representatives of the Federal Ministry of Finance, the Nigeria Revenue Service, 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.
Expressing confidence in the committee’s ability to deliver, the minister said its membership reflects a blend of expertise from government and the private sector.
“The membership of this Committee brings together deep knowledge, expertise, and experience from across government and the private sector,” the minister said.
The inauguration marks another major step in the Federal Government’s implementation of the Tax Reform Acts, which came into force on January 1, 2026, and are aimed at modernising Nigeria’s tax system, improving the ease of doing business and strengthening the country’s investment climate.
