EXECUTIVE CHAIRMAN, NIGERIA REVENUE SERVICE (NRS), ZACCH ADEDEJI (LEFT), MINISTER OF SOLID MINERALS DEVELOPMENT, MR DELE ALAKE DURING A COLLABORATIVE MEETING ON MINERAL ROYALTY ADMINISTRATION AT ALAKE’S OFFICE IN ABUJA.
Nigeria Restructures Mining Revenue System as NRS Takes Over Mineral Royalty Collection Under New Tax Regime
Nigeria has embarked on a significant overhaul of its mining revenue framework, following the formal transfer of mineral royalty collection responsibilities to the Nigeria Revenue Service (NRS) under the newly enacted Nigeria Tax Laws 2025.
The reform marks a decisive shift in the administration of Nigeria’s solid minerals revenue system, positioning the NRS as the central authority for the assessment, collection, and management of mineral royalties from operators across the country.
The transition was concluded after a strategic meeting in Abuja between the Minister of Solid Minerals Development, Mr. Dele Alake, and the Executive Chairman of the NRS, Zacch Adedeji, where both institutions agreed on a coordinated implementation structure aimed at ensuring a smooth policy rollout.
According to a joint statement issued by the Special Adviser to the NRS Chairman, Dare Adekanmbi, the new royalty administration framework will become fully operational on January 1, 2026, in line with provisions of the tax reform legislation signed into law by President Bola Ahmed Tinubu on June 26, 2025.
Under the new arrangement, the Nigeria Revenue Service will assume full responsibility for the collection of mineral royalties, consolidating federal revenue administration under a unified structure as envisioned in the new tax laws.
However, the Ministry of Solid Minerals Development will continue to play a critical technical and regulatory role, including the provision of mineral pricing data, geological mapping, industry intelligence, and sector coordination to support accurate royalty assessment.
The collaboration is expected to bridge institutional gaps between technical regulation and revenue administration, while improving compliance and transparency in the mining sector.
The joint statement emphasized that both agencies have committed to sustained inter-agency cooperation to ensure that they are adequately guided and that implementation does not disrupt ongoing mining activities.
Digital Transformation of Royalty Administration System
A key highlight of the reform is the planned introduction of a fully digital, end-to-end royalty administration platform, designed to modernize how mining companies file returns, calculate obligations, and remit payments.
The system was modernised to reduce manual processes, improve revenue tracking, and enhance accountability across the value chain of mineral exploitation.
Government officials also confirmed that a nationwide sensitisation campaign will be launched ahead of the implementation date to educate mining operators on compliance requirements, filing procedures, and payment timelines under the new tax regime.
Regular joint technical sessions between the Ministry and the NRS will also be conducted to resolve operational challenges and ensure seamless execution of the policy.
Government Assures Mining Operators of Smooth Transition
The Federal Government has assured stakeholders in the solid minerals sector that the transition will be orderly, predictable, and supportive of investment growth.
Authorities stressed that the new framework is designed not only to improve revenue generation but also to strengthen investor confidence by creating a more transparent and efficient fiscal environment.
Mining operators have been urged to continue meeting their statutory obligations while actively participating in upcoming engagement programmes that will provide clarity on the new system.
“Both institutions are fully aligned and committed to implementing the new royalty framework in a manner that is transparent, efficient, and supportive of the mining sector,” the statement noted.
Policy Context: Part of Broader Tax Reform Agenda
The restructuring of mineral royalty collection forms part of Nigeria’s broader fiscal reforms aimed at improving revenue efficiency, reducing leakages, and modernizing tax administration across key sectors of the economy.
With the solid minerals sector modernising seen as a strategic alternative to oil dependency, the new framework is expected to play a critical role in boosting non-oil revenue generation in the coming years.
Nigeria has handed mineral royalty collection to the Nigeria Revenue Service under the Nigeria Tax Laws 2025, effective January 2026, while the Solid Minerals Ministry retains regulatory oversight in a new digital revenue system.
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