New Tax Laws: NRS Takes Over Collection Of Mineral Royalties

Collection of mineral royalties from mining operators across Nigeria has officially been transferred to the Nigeria Revenue Service (NRS), in line with newly enacted tax laws.

Under the new arrangement, the Federal Ministry of Solid Minerals Development will retain its role in providing technical and regulatory oversight for the mining sector.

This development followed a high-level meeting between the Minister of Solid Minerals Development, Dele Alake, and the Executive Chairman of NRS, Zacch Adedeji, held on Thursday in Abuja.

According to a statement issued yesterday by Dare Adekanmbi, Special Adviser to the NRS Chairman, the transition takes effect from January 1, 2026, and is backed by the provisions of the Nigeria Tax Laws 2025.

The statement noted that the new laws, signed by President Bola Ahmed Tinubu on June 26, 2025, empower the NRS to administer and account for all federally collectible revenues, including mineral royalties.

It further explained that while the NRS will now handle revenue collection, the Ministry of Solid Minerals Development will continue to play a critical supporting role by providing mineral pricing data, geological insights, and coordinating industry stakeholders.

Both institutions, the statement added, have agreed to deepen collaboration to ensure a seamless transition and effective implementation of the new royalty framework. This includes plans to educate mining operators and ensure compliance with updated filing and payment procedures.

As part of the rollout strategy, a nationwide sensitisation programme will be conducted to guide operators on their obligations under the revised tax regime.

Authorities also plan to introduce a modern, end-to-end digital system for royalty administration, aimed at improving efficiency, transparency, and accountability.

In addition, regular joint technical sessions will be held to address operational challenges and fine-tune implementation processes.

The two agencies reassured stakeholders of their commitment to ensuring that the new framework supports the growth and sustainability of Nigeria’s mining sector.

Mining operators were urged to remain compliant with existing obligations and actively participate in upcoming sensitisation initiatives.