HomeNewsNew tax law hands NRS mineral royalty powers

New tax law hands NRS mineral royalty powers

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KEY POINTS


  • NRS assumed control of mineral royalty collection from mining operators effective January 1, 2026, under new tax laws Tinubu signed on June 26, 2025
  • The Ministry of Solid Minerals Development remains a technical partner, providing pricing data, geological information and industry coordination support
  • NRS and the ministry will jointly develop a digital royalty administration system and run a nationwide sensitization program for mining operators

Nigeria’s Revenue Service assumed control of mineral royalty collection from mining sector operators effective January 1, 2026, under new tax laws President Bola Tinubu signed on June 26, 2025.

NRS Chairman Zacch Adedeji and Solid Minerals Development Minister Dele Alake formalized the arrangement at a meeting in Abuja, endorsing a joint statement that defined how both institutions will collaborate under the new framework.

“The administration of mineral royalties, effective January 1, 2026, has transitioned to NRS,” the joint statement read.

Ministry retains technical role under new structure

The Ministry of Solid Minerals Development will continue as a technical partner, supplying mineral pricing data, geological information and industry coordination in support of the royalty process. Alake and Adedeji also agreed to hold regular joint technical sessions to coordinate implementation and resolve any issues as they arise.

Moreover, both institutions will launch a joint nationwide sensitization program to guide mining operators on royalty filing and payment obligations under the new tax laws. The statement confirmed that NRS mineral royalties administration will operate transparently and in support of sector growth.

Digital system and compliance push to follow

The joint statement said NRS and the ministry will develop a modern, end-to-end digital royalty administration system to support the new NRS mineral royalties regime. Meanwhile, NRS urged operators to continue meeting their filing and payment obligations and to participate actively in the forthcoming sensitization program.

“Both institutions are fully aligned and committed to implementing the new royalty framework in a manner that is orderly, transparent, and supportive of the mining sector,” the statement also said.

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