NRS Takes Over Mineral Royalties Collection

The Nigeria Revenue Service (NRS) has officially assumed responsibility for the collection of mineral royalties from mining operators nationwide, following a new directive under recently enacted tax laws.

The move, which took effect on January 1, 2026, marks a significant shift in Nigeria’s mining revenue framework, transferring royalty administration from the Ministry of Solid Minerals Development to the NRS, while the ministry retains its regulatory and technical oversight functions.

The decision was reached during a high-level meeting in Abuja between the Minister of Solid Minerals Development, Dele Alake, and the Chairman of the NRS, Zacch Adedeji.

Details of the new arrangement were disclosed in a statement issued on Friday by Dare Adekanmbi, Special Adviser to the NRS Chairman, who confirmed that both institutions had formalised the agreement in a jointly endorsed statement.

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According to the statement, the transition is backed by provisions in the tax laws signed by President Bola Ahmed Tinubu on June 26, 2025, which restructured aspects of revenue collection across key sectors of the economy.

“Following the enactment of the laws by President Bola Tinubu on June 26, 2025, the administration of mineral royalties, effective January 1, 2026, has transitioned to NRS,” the statement read.

Despite the transfer of revenue collection duties, the Ministry of Solid Minerals Development will continue to play a central role in the sector by providing technical support, including mineral pricing data, geological information, and broader industry coordination.

Officials say this collaborative framework is designed to ensure continuity, efficiency, and accuracy in royalty administration, while also strengthening compliance among mining operators.

Both agencies have agreed to work closely to guarantee a smooth implementation of the new system, with a shared commitment to transparency, accountability, and sector growth.

As part of the rollout strategy, the government will launch a joint nationwide sensitisation programme aimed at educating mining operators on the new royalty filing and payment procedures under the NRS-led framework.

The initiative is expected to address potential knowledge gaps within the industry and ensure that operators fully understand their obligations under the revised system.

In addition, authorities plan to deploy a modern, end-to-end digital platform for royalty administration. The system is intended to streamline processes, reduce manual bottlenecks, and enhance real-time monitoring of payments.

Regular technical sessions between both institutions are also expected to be held to address emerging challenges and refine implementation strategies as the new regime takes root.

Adekanmbi emphasised that both the NRS and the Ministry of Solid Minerals Development are aligned in their objectives and are committed to ensuring that the transition does not disrupt mining activities.

“The Ministry of Solid Minerals Development and NRS wish to assure mining operators and the public that both institutions are fully aligned and committed to working together to implement the new royalty framework in a manner that is orderly, transparent, and supportive of the mining sector,” he said.

Industry stakeholders view the development as part of broader fiscal reforms aimed at improving government revenue generation, particularly from the solid minerals sector, which has long been identified as an underperforming but high-potential component of Nigeria’s economy.

By centralising royalty collection under the NRS, the government is expected to strengthen oversight, plug revenue leakages, and improve overall efficiency in the system.

Analysts note that the integration of digital tools and enhanced inter-agency collaboration could significantly boost compliance levels while providing more accurate data for policy planning and sector development.

Mining operators have been urged to comply fully with the new requirements and actively participate in the sensitisation programmes to ensure a seamless transition.

The reform is also seen as a strategic step toward diversifying Nigeria’s revenue base away from oil dependence, positioning the solid minerals sector as a more reliable contributor to national income.

With implementation already underway, attention is now focused on how effectively the new system will be managed and the extent to which it will deliver on its objectives of transparency, efficiency, and sustainable sector growth.