Fesochukwu Jason
The Nigeria Revenue Service (NRS) has officially assumed responsibility for collecting mineral royalties from operators across Nigeria’s mining sector, in a move aimed at enhancing transparency, efficiency, and compliance. The announcement followed a high-level meeting in Abuja between the Minister of Solid Minerals Development, Dele Alake, and the NRS Chairman, Zacch Adedeji. The meeting outlined a coordinated approach to implement the new tax laws that empower the NRS to administer all federally collectable revenue, including mineral royalties.
According to a statement by Dare Adekanmbi, Special Adviser to the NRS Chairman, the transition took effect on January 1, 2026, following the enactment of relevant laws by President Bola Tinubu on June 26, 2025. The joint statement emphasized that while the NRS will handle collection and administration, the Ministry of Solid Minerals Development will continue to serve as a technical partner. Its role will include providing mineral pricing data, geological information, and industry coordination to support accurate and fair royalty assessments.
“The Ministry of Solid Minerals Development and NRS 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,” the statement said. Both institutions also agreed to launch a nationwide sensitization program to educate mining operators about royalty filing, payment obligations, and the procedures outlined under the new tax laws.
Experts note that this move is a significant step toward modernizing Nigeria’s mining sector, which has historically faced challenges with compliance, revenue leakage, and inefficiencies. By centralizing collection under the NRS, the government aims to standardize processes, reduce administrative bottlenecks, and ensure that royalties due are fully accounted for and reinvested into the economy.
“The transfer of royalty administration to the NRS is a positive development for Nigeria’s mining industry,” said a mining policy analyst. “It not only improves transparency and accountability but also provides mining operators with a clear, structured system for compliance. This is critical for attracting investment and supporting sector growth.”
A key feature of the new framework is the development of a modern, end-to-end digital royalty administration system. The digital platform will allow operators to submit royalty filings and payments electronically, reducing paperwork and improving accuracy. Additionally, joint technical sessions between the NRS and the Ministry will be held regularly to coordinate operations and resolve issues promptly.
The reform comes at a time when Nigeria is actively seeking to strengthen its solid minerals sector as a key driver of economic diversification. By ensuring royalties are properly collected and managed, the government can better fund industry development programs, incentivize investment, and promote sustainable mining practices.
Operators have been encouraged to continue meeting their filing and payment obligations under the new tax laws and participate in the sensitization program. By doing so, the sector can benefit from a more transparent and predictable regulatory environment, which is essential for long-term growth.
In conclusion, the handover of mineral royalty collection to the NRS marks a strategic reform for Nigeria’s mining sector. Through digital systems, coordinated oversight, and transparent procedures, the government is setting the stage for a more accountable and efficient royalty regime. This move not only supports economic growth but also enhances investor confidence, positioning Nigeria as a more attractive destination for domestic and international mining investment.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.