New Era for mining revenue as NRS takes charge of royalties

Stanley Ihedigbo

Collection of mineral royalties from mining operators across Nigeria has officially been transferred to the Nigeria Revenue Service (NRS), marking a significant shift in the administration of revenues from the country’s solid minerals sector.

Under the new arrangement, the NRS will be solely responsible for the collection and accounting of mineral royalties, while the Ministry of Solid Minerals Development will retain its role as the technical and regulatory authority overseeing the sector.

This development follows a high-level meeting between the Minister of Solid Minerals Development, Mr. Dele Alake, and the Chairman of the NRS, Mr. Zacch Adedeji, held in Abuja to establish a framework for collaboration between both institutions.

The decision is anchored on the provisions of the Nigeria Tax Laws 2025, which empower the NRS to administer all federally collectible revenues.

The transition, which took effect from January 1, 2026, was formally announced in a joint statement endorsed by both officials.

According to the statement, the Ministry of Solid Minerals Development will continue to play a critical supporting role by providing mineral pricing data, geological insights, and industry coordination to enhance the efficiency of the royalty administration process.

“The Ministry of Solid Minerals Development and the Nigeria Revenue Service wish to inform mining operators and the general public of the outcome of their meeting held on April 2, 2026, on the collaborative implementation of mineral royalty administration under the Nigeria Tax Laws 2025,” the statement read.

It further noted that following the enactment of the new tax laws by President Bola Tinubu on June 26, 2025, the responsibility for administering mineral royalties has now fully transitioned to the NRS.

To ensure a smooth implementation of the new framework, both institutions have agreed to embark on a nationwide sensitisation programme aimed at educating mining operators on the updated procedures for royalty filing and payment.

In addition, plans are underway to deploy a modern, end-to-end digital system that will streamline the administration of mineral royalties, improve transparency, and enhance compliance across the sector.

The statement also revealed that regular joint technical sessions will be held between the NRS and the Ministry to address operational challenges and ensure seamless coordination.

Both agencies reaffirmed their commitment to implementing the new royalty regime in a manner that is transparent, efficient, and supportive of the growth of Nigeria’s mining industry.

Mining operators have been urged to comply with the new requirements by meeting their filing and payment obligations promptly, while also participating actively in the upcoming sensitisation programmes.

The move is widely seen as part of broader efforts by the Federal Government to strengthen revenue generation, improve accountability, and reposition the solid minerals sector as a key contributor to Nigeria’s economic diversification agenda.