NRS Takes Over Mineral Royalty Collection
By Patience Ikpeme
The responsibility for collecting mineral royalties from mining operators has officially moved to the Nigeria Revenue Service (NRS), effective from January 1, 2026.
The transition follows a high-level meeting in Abuja between the Minister of Solid Minerals Development, Mr. Dele Alake, and the NRS Chairman, Dr. Zacch Adedeji. This strategic realignment aims to centralize the administration of federally collectable revenue, as mandated by the Nigeria Tax Laws 2025.
Under the new arrangement, the Ministry of Solid Minerals Development will pivot its focus toward technical and regulatory oversight. While the NRS takes charge of the ledger, the Ministry remains a crucial partner by providing the geological data and mineral pricing benchmarks necessary to calculate accurate payments.
A joint statement released on Friday by Dare Adekanmbi, Special Adviser to the NRS Chairman, detailed the collaborative framework established by both leaders. The statement noted that the change is a direct result of legislation signed by President Bola Tinubu on June 26, 2025, which streamlined tax administration across the federation.
“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,” the joint document stated.
To ensure the mining sector remains stable during this transition, the two agencies have pledged to coordinate their efforts. The statement explained that 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 partnership is expected to lead to the rollout of a modern, end-to-end digital royalty administration system. This technological upgrade is intended to simplify the payment process for operators and increase transparency in revenue reporting. To manage any friction during the rollout, the agencies confirmed that joint technical sessions will be held regularly to resolve emerging issues.
Addressing the mining community directly, the statement noted that 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.
To facilitate this, a nationwide sensitization programme is scheduled to begin shortly. This initiative aims to guide operators through the specifics of royalty filing and payment as required by the updated tax code.
The leadership of both the Ministry and the NRS offered assurances that the new regime would not disrupt industry activities. The statement concluded by saying the Ministry of Solid Minerals Development and NRS assured mining operators and the public that both institutions are fully aligned and committed to working together to implement the new royalty framework in a manner that is orderly, transparent, and supportive of the mining sector.
Operators are now being urged to maintain their filing obligations and prepare for the upcoming digital transition to remain compliant with the current laws.
