Nigeria hands mining royalties to Revenue Service

By: Amarachi Okonkwo 

Nigeria has taken a significant step toward centralising its revenue collection framework, with the Nigeria Revenue Service (NRS) assuming responsibility for the collection of mineral royalties from mining operators nationwide, effective January 1, 2026.

The move follows a high-level meeting in Abuja between the Minister of Solid Minerals Development, Dele Alake, and the Executive Chairman of the NRS, Zacch Adedeji, where both parties agreed on a coordinated framework to implement the transition.

Policy shift backed by new tax laws

The development is anchored on recently enacted tax legislation signed into law by President Bola Tinubu on June 26, 2025. The laws mandate the NRS to administer all federally collectible revenues, effectively transferring the responsibility for mineral royalty collection from the Ministry of Solid Minerals Development to the revenue agency.

In a joint statement signed by both Alake and Adedeji, the government confirmed that the transition marks a structural reform aimed at improving efficiency, transparency, and accountability in revenue administration within Nigeria’s mining sector.

Ministry retains technical oversight

Despite relinquishing direct collection duties, the Ministry of Solid Minerals Development will continue to play a critical technical role. It will provide essential support including mineral pricing data, geological intelligence, and broader industry coordination to ensure the accuracy and integrity of royalty assessments.

This delineation of roles is expected to strengthen institutional collaboration while maintaining regulatory oversight of the sector.

Digital system, nationwide sensitisation planned

As part of the rollout strategy, both institutions will jointly launch a nationwide sensitisation programme targeted at mining operators. The initiative will focus on educating stakeholders on compliance requirements, including royalty filing procedures and payment obligations under the new regime.

In addition, the government plans to deploy a comprehensive end-to-end digital royalty administration system designed to streamline processes, reduce leakages, and enhance real-time monitoring of payments.

Regular joint technical sessions between the NRS and the ministry are also planned to address operational challenges and ensure seamless implementation.

Industry implications

The reform is expected to have far-reaching implications for Nigeria’s solid minerals sector, which has long struggled with revenue leakages, weak compliance, and fragmented oversight.

By consolidating royalty collection under a single revenue authority, the government aims to boost non-oil revenue mobilisation while creating a more transparent and investor-friendly environment for mining operations.

However, the success of the new framework will depend on effective stakeholder engagement, the robustness of the digital infrastructure, and the ability of both institutions to maintain clear communication and coordination.

Commitment to orderly transition

Both the NRS and the Ministry of Solid Minerals Development have assured stakeholders of a smooth and orderly transition. Mining operators have been urged to remain compliant with existing obligations and actively participate in the upcoming sensitisation programmes.

The reform represents a broader push by the Tinubu administration to strengthen fiscal capacity and diversify revenue sources, particularly by unlocking the potential of Nigeria’s underdeveloped solid minerals industry.