The Nigeria Revenue Service (NRS) has officially taken over the collection of mineral royalties from mining operators across the country, effective January 1, 2026. This transition follows a high-level meeting in Abuja on April 2, 2026, between the Minister of Solid Minerals Development, Dr. Dele Alake, and the NRS Chairman, Dr. Zacch Adedeji. The move is a direct implementation of the Nigeria Tax Laws 2025, signed into law by President Bola Tinubu, which centralizes all federally collectible revenue under the NRS.

Division of Responsibility in the Mining Sector

Under this new framework, the roles of the two primary institutions are clearly defined to ensure a balance between fiscal efficiency and technical expertise:

• Nigeria Revenue Service (NRS): Responsible for the administration, filing, and collection of all mineral royalties and taxes.
• Ministry of Solid Minerals Development: Retains its regulatory mandate, providing critical technical support such as mineral pricing data, geological information, and overall industry coordination.

New Enforcement Rules and Digital Systems

The federal government has tightened enforcement to eliminate leakages and increase the sector’s contribution to the national GDP. Key features of the new regime include:

1. Digital Royalty Administration: The NRS is developing a modern, end-to-end digital platform to automate the filing and payment process, moving away from manual, fragmented systems.
2. Increased Royalty Rates: Under the 2026 reforms, royalty rates for most minerals have been adjusted upward, and the base for calculation has been broadened to reflect current market values.
3. Strict Compliance Deadlines: Mining operators are now subject to clearer timelines for filing. The NRS and the Ministry have planned a joint nationwide sensitization program to guide companies through these new procedural requirements.
4. Rehabilitation Contributions: The new rules introduce mandatory, cash-backed contributions to an approved Environmental Protection and Rehabilitation Fund, which are now tax-deductible to incentivize responsible mining practices.

NRS Formally Assumes Collection of Mining Royalties – Impact on the 2026 Fiscal Target

This shift is a cornerstone of the NRS’s ambitious ₦40.7 trillion revenue target for the 2026 fiscal year. By integrating mineral royalties, the government expects to capture a significant portion of revenue.