NRS assumes mineral royalties collection under 2025 tax laws

2026-04-06 14:46:32

The Nigeria Revenue Service (NRS) has officially taken over the collection of mineral royalties from mining operators across the country, following the implementation of the Nigeria Tax Laws 2025.

The development was announced after a meeting in Abuja between Solid Minerals Minister Dele Alake and NRS Chairman Zacch Adedeji, according to a Friday statement by Dare Adekanmbi, adviser to the NRS chairman.

Under the new arrangement, which took effect from January 1, 2026, the NRS will handle royalty collection, while the Ministry of Solid Minerals Development will retain its technical and regulatory oversight of the sector.

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What they are saying

The decision was formalised in a joint statement issued by both institutions, confirming the transition of mineral royalty administration to the NRS.

_“Following the enactment of the laws by President Bola Tinubu on June 26, 2025, the administration of mineral royalties, effective January 1, 2026, has transitioned to NRS.” _

The statement added that the Ministry will continue to play a supporting role by providing mineral pricing data, geological information, and industry coordination.

Both agencies also emphasized their commitment to ensuring a smooth implementation 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.” _

The transition is part of broader tax reforms aimed at centralising federally collectible revenues under the NRS to improve efficiency, transparency, and accountability.

In the broader context, the reform signals the government’s intention to strengthen non-oil revenue sources and position the solid minerals sector as a key contributor to economic growth.

Backstory

In June 2025, President Bola Tinubu signed into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework to overhaul the country’s tax system, expand revenue generation, and reduce leakages across key sectors, including mining.

The four bills are: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

They stem from the recommendations of the Taiwo Oyedele–led Presidential Fiscal Policy and Tax Reforms Committee, established by President Tinubu in 2023.

As part of the new framework:

NRS now administers all federally collectible revenues
A digital, end-to-end royalty system will be introduced
Joint technical sessions will be held to address implementation challenges
A nationwide sensitisation programme will guide operators on compliance

These measures are designed to streamline revenue collection while maintaining sector-specific expertise within the ministry.

What you should know

In December 2025, the Federal Inland Revenue Service (FIRS) formally rebranded as the Nigeria Revenue Service (NRS) following the enactment of the Nigeria Revenue Service Establishment Act, 2025.

The new royalty regime is expected to improve revenue transparency and compliance in Nigeria’s mining sector, while reducing leakages associated with fragmented collection systems.

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