NRS takes over mining royalties as FG tightens rules

The federal government has tightened enforcement in its mining sector, with the Nigeria Revenue Service (NRS) formally assuming responsibility for the collection of mineral royalties, in a move backed by new tax laws, and aimed at boosting government revenues and closing compliance gaps.

The transition, which took effect from Jan. 1, 2026, was confirmed in a joint statement signed by Dele Alake, minister, solid minerals development and Zacch Adedeji, NRS chairman following a meeting in Abuja to align both institutions on implementation.

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

The policy shift places revenue collection squarely under the tax authority, while the ministry of solid minerals development retains its technical and regulatory functions, including providing pricing data, geological information and coordinating industry activity.

The restructuring reflects a deliberate effort by the administration of president Bola Tinubu to centralise federally collectible revenues under a single agency, in line with reforms introduced in the Nigeria Tax Laws 2025.

“The ministry of solid minerals development 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 said.

Authorities said the new framework will be supported by a digital, end-to-end royalty administration system, alongside regular joint technical sessions between both institutions to address operational challenges and ensure coordination.

The government also plans a nationwide sensitisation campaign to guide mining operators on compliance requirements, particularly around royalty filing and payments under the updated regime.

For operators, the shift signals a stricter compliance environment, with the NRS expected to leverage its enforcement powers to improve transparency and reduce leakages in a sector long seen as underperforming despite Nigeria’s vast mineral resources.

“Both institutions have agreed to work closely together to ensure that operators are well-informed, and that the new royalty framework is implemented in a way that supports the growth and development of the solid minerals sector,” the statement further noted.