Nigeria Revenue Service to Handle Mineral Royalties Under New Tax Framework

The Nigeria Revenue Service (NRS) has assumed responsibility for the collection of mineral royalties from operators in the mining sector nationwide. This transition, effective from January 1, 2026, aligns with new tax legislation that empowers the NRS to manage all federally collectable revenues.

The Ministry of Solid Minerals Development will continue to provide essential technical and regulatory oversight for the sector. This arrangement was established following a collaborative meeting between the Minister of Solid Minerals Development, Mr. Dele Alake, and the NRS Chairman, Zacch Adedeji, in Abuja, aimed at defining how the two bodies will work together.

A statement released on Friday confirmed that the decision stems from President Bola Tinubu's assent to the Nigeria Tax Laws 2025, which mandates the NRS to administer mineral royalties. The joint statement was endorsed by both Minister Alake and Chairman Adedeji.

The Ministry of Solid Minerals Development will serve as a crucial technical partner, contributing vital data such as mineral pricing information, geological data, and industry coordination to support the royalty administration process.

Both institutions have committed to close collaboration to ensure mining operators are fully informed and that the new royalty framework is implemented in a manner conducive to the growth and advancement of the solid minerals sector.

A nationwide awareness campaign will be jointly conducted for sector operators. This initiative will focus on guiding them through the procedures for royalty filing and payment as stipulated by the new tax laws.

Furthermore, a modern, fully digital system for royalty administration will be developed. Regular joint technical sessions are also planned to facilitate coordination and address any emerging challenges.

"The Ministry of Solid Minerals Development and NRS wish to assure 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," the statement emphasized.

Operators are urged to continue fulfilling their filing and payment obligations as required under the new tax legislation and to actively engage in the upcoming sensitisation programs.