Nigeria has introduced a major reform in its mining sector as the Nigeria Revenue Service (NRS) officially takes over the collection of mineral royalties from operators nationwide.
The move follows the implementation of new tax laws signed by Bola Tinubu in 2025, which empower the NRS to manage all federally collectable revenues.
Under the new structure, the NRS will handle royalty payments, compliance, and revenue accounting, marking a shift toward a more centralized and efficient tax system. The transition took effect from January 1, 2026, and was finalized after a high-level meeting between government officials in Abuja.
Officials say the reform is designed to improve transparency, boost government earnings, and reduce leakages in the mining sector, which has long been underperforming despite Nigeria’s vast mineral resources.
Ministry Retains Oversight, Sector Eyes Growth
While the NRS now controls revenue collection, the Ministry of Solid Minerals Development will continue to oversee technical and regulatory aspects of the industry.
This includes providing mineral pricing data, geological insights, and coordinating industry operations to ensure smooth implementation of the new royalty framework.
Both agencies have pledged close collaboration, including nationwide sensitization programs to guide mining operators on the new system. Plans are also underway to introduce a fully digital royalty administration platform to simplify payments and improve efficiency.
Experts believe the reform could unlock greater value from Nigeria’s mining sector, which currently contributes less than 1% to GDP despite the country’s rich deposits of minerals like gold, lithium, and iron ore.
With stronger revenue systems and clearer oversight, the government hopes the changes will attract more investment, curb illegal mining, and position the sector as a key driver of economic diversification beyond oil.
