New Tax Laws: NRS Takes Over Mineral Royalties Collection, Signals Digital Overhaul
The Federal Government has transferred the responsibility for the collection of mineral royalties from mining operators across Nigeria to the Nigeria Revenue Service (NRS), in a major restructuring aimed at strengthening revenue administration and improving transparency in the solid minerals sector.
The Ministry of Solid Minerals Development will, however, retain its technical and regulatory oversight role, including providing critical data such as mineral pricing, geological information, and industry coordination to support the royalty system.
The development followed a high-level meeting in Abuja on Thursday between the Minister of Solid Minerals Development, Dele Alake, and the Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji.
According to a statement issued on Friday by Dare Adekanmbi, Special Adviser to the NRS Chairman, the new arrangement is anchored on the Nigeria Tax Laws 2025, which empower the NRS to administer all federally collectable revenue.
The statement confirmed that the new royalty administration system officially took effect on January 1, 2026, following its enactment by President Bola Tinubu on June 26, 2025.
“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 on the collaborative implementation of mineral royalty administration under the Nigeria Tax Laws 2025,” the statement read.
Under the new structure, the NRS will oversee the collection and accounting of mineral royalties, while the Ministry of Solid Minerals Development continues to play a supporting role in providing technical expertise.
Both institutions agreed to deepen collaboration to ensure that operators are properly guided and that the new framework is implemented without disrupting activities in the mining sector.
“The Ministry, continues to serve as a vital technical partner, providing mineral pricing data, geological information, and industry coordination in support of the royalty process,” the statement added.
To ensure smooth implementation, the government has approved a nationwide sensitisation programme to educate mining operators on new filing and payment procedures under the law.
The NRS also announced plans to introduce a modern, end-to-end digital royalty administration system, aimed at streamlining processes, reducing leakages, and enhancing compliance.
In addition, both agencies will hold regular joint technical sessions to address emerging issues and ensure efficient coordination in royalty administration.
The two agencies have assured stakeholders that the transition will be orderly, transparent, and supportive of sector growth, urging operators to comply with the new requirements.
“Operators are encouraged to continue meeting their filing and payment obligations as required under the new tax laws, and to participate actively in the forthcoming sensitisation programme,” the statement noted.
The reform reflects the Federal Government’s broader push to improve revenue generation, plug leakages, and modernise tax administration systems across sectors.
By centralising royalty collection under the NRS, authorities aim to strengthen accountability while leveraging digital tools to track payments and improve compliance within Nigeria’s mining industry.
