Revised tax legislation: NRS assumes responsibility for gathering mineral extraction fees

The Nigeria Revenue Service has assumed responsibility for collecting mineral royalties from mining operators nationwide, following a meeting between Minister of Solid Minerals Development, Mr Dele Alake, and NRS chairman, Dr. Zacch Adedeji, at the minister's Abuja office to discuss collaborative efforts.

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This development is a direct result of new tax laws granting the NRS authority to manage all federally collectible revenue and account for it, as decided by Alake and Adedeji.

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A statement issued by Dare Adekanmbi, Special Adviser to the NRS chairman, revealed that the decision, effective January 1, 2026, was formalized in a joint statement signed by both Alake and Adedeji.

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According to the statement, the administration of mineral royalties transitioned to the NRS on January 1, 2026, as a consequence of President Bola Tinubu enacting the relevant laws on June 26, 2025.

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The Ministry of Solid Minerals Development will continue to provide essential technical support, including mineral pricing data, geological information, and industry coordination, to facilitate the royalty process.

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Both institutions have agreed to collaborate closely to ensure that mining operators are well-informed and that the new royalty framework is implemented in a manner that supports the growth and development of the solid minerals sector.

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A joint nationwide sensitization program will be conducted for sector operators to guide them on royalty filing and payment as outlined in the new tax laws.

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The new royalty regime will also involve the development of a modern, end-to-end digital royalty administration system, as well as regular joint technical sessions to address any issues that may arise.

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The Ministry of Solid Minerals Development and the NRS have assured mining operators and the public that they are fully committed to working together to implement the new royalty framework in an orderly, transparent, and supportive manner.

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Mining operators are encouraged to fulfill their filing and payment obligations as required under the new tax laws and to participate actively in the upcoming sensitization program.