The collection of mineral royalties from mining sector operators across the country will henceforth be the responsibility of the Nigeria Revenue Service, while the Ministry of Solid Minerals Development will continue its technical and regulatory oversight on the sector. This was the outcome of a meeting between the Minister of Solid Minerals Development, Mr Dele Alake, and the Chairman of the NRS, Dr Zacch Adedeji, held at the former’s office in Abuja on Thursday to define collaborative ways of working together.
The decision was based on the new tax laws, which empower the NRS to administer all federally collectable revenue and account for the same. A statement made available to journalists on Friday by Dare Adekanmbi, Special Adviser to the NRS Chairman, said the decision, effective 1 January 2026, was contained in a joint statement endorsed by both Alake and Adedeji.
“The Ministry of Solid Minerals Development and the Nigeria Revenue Service wish to inform mining operators and the general public of the outcome of their meeting held on 2 April 2026, on the collaborative implementation of mineral royalty administration under the Nigeria Tax Laws 2025. 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 statement read.
The statement further 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. 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.
From a fiscal policy perspective, the transfer of mineral royalty collection to the NRS represents a significant step in the government’s broader tax administration reform agenda. The Nigeria Tax Laws 2025, which President Tinubu enacted on 26 June 2025, consolidated and streamlined revenue collection functions that were previously scattered across multiple ministries and agencies. By centralising collection under the NRS, the government aims to improve efficiency, reduce leakages, and ensure that revenues from the solid minerals sector are properly accounted for.
The solid minerals sector has long been viewed as a potential source of revenue diversification away from oil. Nigeria possesses significant deposits of gold, limestone, lead, zinc, coal, and other industrial minerals, but the sector has historically been underdeveloped and plagued by illegal mining, weak regulatory enforcement, and opaque revenue collection. The transition to a modern, end to end digital royalty administration system, which the joint statement indicated would be developed, could address some of these challenges by creating transparency around what is produced, what royalties are due, and what is actually collected.
The separation of roles is significant. The Ministry of Solid Minerals Development retains technical and regulatory oversight, including the provision of mineral pricing data and geological information. The NRS takes over the actual collection function. This division mirrors the model used in the oil and gas sector, where the Nigerian Upstream Petroleum Regulatory Commission handles technical regulation while the NRS collects revenues. The structure is designed to ensure that the agency responsible for promoting the sector and setting technical standards is not also responsible for collecting revenues, a separation that can reduce conflicts of interest.
The joint statement announced a nationwide sensitisation programme for operators in the sector, particularly to guide royalty filing and payment as spelt out under the new tax laws. This outreach is essential because many mining operators, particularly smaller artisanal and small scale miners, may be unfamiliar with the new filing requirements or may lack the capacity to comply. The sensitisation programme will need to reach operators across Nigeria’s mineral rich states, including those in remote areas with limited access to formal financial services.
The new royalty framework also includes provisions for joint technical sessions to be held regularly to coordinate and resolve issues that may arise. This coordination mechanism is important because the transition to a new collection system inevitably creates teething problems. Operators may face confusion about where to file, how to calculate royalties, or what documentation is required. Regular coordination between the ministry and the NRS can help resolve these issues quickly, minimising disruption to mining operations.
For mining operators, the transition means adapting to new filing and payment systems. The statement encouraged operators to continue meeting their filing and payment obligations as required under the new tax laws and to participate actively in the forthcoming sensitisation programme. The government’s assurance that both institutions are “fully aligned and committed to working together” is intended to reassure operators that the transition will be orderly and transparent.
The success of the new royalty framework will depend on effective implementation. The NRS will need to build capacity in mineral royalty assessment, a function that differs from its traditional focus on income tax and value added tax. The ministry will need to provide timely and accurate geological and pricing data. Together, they will need to address the challenge of illegal mining, which deprives the government of revenues that are rightfully due. If the new framework succeeds in capturing more of the value from Nigeria’s mineral wealth, it could contribute meaningfully to fiscal sustainability and economic diversification.
