Collection of mineral royalties from mining companies in Nigeria has shifted to the Nigeria Revenue Service (NRS) under recently passed tax legislation. The move centralises revenue collection under the NRS, replacing previous arrangements where the Federal Ministry of Solid Minerals Development handled both regulation and income collection. The ministry will now focus solely on technical and regulatory oversight of the mining sector. A statement from the Ministry confirmed the handover, noting that the change aligns with reforms in the Nigerian Minerals and Mining Act. The NRS is expected to deploy its existing infrastructure to track and collect royalties more efficiently. Officials believe the separation of duties will reduce duplication and improve transparency in revenue accounting. The reform took effect immediately upon presidential assent to the amended law.
Putting the NRS in charge of mineral royalties suggests the government sees revenue leakage as a bigger threat than regulatory coordination. With the Federal Ministry of Solid Minerals Development now stripped of collection powers, its influence over mining operators shrinks despite retaining oversight duties. This could mean faster reporting of mineral income into federal accounts, but only if the NRS applies the same rigour it uses in oil revenue tracking. Past failures in transparency within solid minerals suggest structural changes alone won't clean up the sector.
