The Nigeria Revenue Service (NRS) is now responsible for collecting mineral royalties from mining companies nationwide, effective January 1, 2025. This shift comes under the new Nigeria Tax Laws 2025, which reassigns the responsibility from the Ministry of Mines and Steel Development to the NRS. The change aims to centralise revenue collection and improve transparency in the sector. A statement from the NRS confirmed the move, citing Section 124 of the Nigeria Tax Laws 2025 as the legal basis for the transfer. Mining firms have been directed to remit all royalty payments directly to the NRS, with non-compliance subject to penalties under the new framework. The service has also set up dedicated channels to receive and process mineral royalty payments.
The NRS takeover of mineral royalties marks a significant shift in who controls mining revenue, placing it under a tax agency with a track record in centralised collection. With the Ministry of Mines and Steel Development no longer handling payments, the move could reduce delays and leakages previously linked to fragmented oversight. For Nigerians, this means potential improvements in how mineral wealth is accounted for—provided the NRS enforces strict compliance from operators. Whether this translates to more visible gains in mining communities depends on how transparently the revenue is later reported and shared.
