 NRS takes control as Nigeria moves to centralise revenue and unlock mining sector potential…..
Nigeria has taken a decisive step toward overhauling its revenue system, with the newly established Nigeria Revenue Service assuming full responsibility for collecting mineral royalties from mining operators nationwide.
The transition, which officially took effect on January 1, 2026, marks a significant shift in how the country manages revenues from its solid minerals sector. It follows the implementation of sweeping tax reforms introduced under the Nigeria Tax Laws 2025.
Details of the handover emerged after a high-level meeting in Abuja between the Minister of Solid Minerals Development, Dele Alake, and the Chairman of the NRS, Zacch Adedeji.
Under the new structure, the NRS will oversee the collection and administration of mineral royalties, while the Ministry of Solid Minerals Development will continue to provide technical supervision, including regulatory oversight, geological data, and pricing guidance.
In a joint statement issued by both institutions, the reform was described as a coordinated effort to streamline processes and improve efficiency in the sector.
The statement noted that the shift was enabled by legislation signed into law by President Bola Tinubu in June 2025, which laid the foundation for a comprehensive restructuring of Nigeria’s tax and revenue framework.
Both agencies emphasized that collaboration would remain central to the success of the new system, assuring operators that measures are being put in place to ensure a seamless transition.
They also pledged to embark on industry-wide sensitisation efforts to help mining companies understand and adapt to the new royalty regime, while joint technical sessions will address any operational challenges that arise.
The reform is part of a broader government strategy to consolidate all federally collectible revenues under a single authority, a move aimed at boosting transparency, blocking leakages, and improving overall accountability.
Beyond administrative efficiency, the policy signals a deeper ambition: reducing Nigeria’s reliance on oil by strengthening alternative revenue streams. The solid minerals sector, long seen as underdeveloped, is now being positioned as a key driver of economic growth.
The changes stem from recommendations put forward by the Presidential Fiscal Policy and Tax Reforms Committee, led by tax expert Taiwo Oyedele, which was inaugurated in 2023 to redesign the country’s fiscal architecture.
In June 2025, four landmark bills were signed into law to bring these reforms to life. They include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill, each targeting different aspects of revenue collection and governance.
As part of the new framework, the NRS now serves as the central authority for all federally collectible revenues, supported by a digital, end-to-end system expected to modernise how royalties are tracked and paid.
The transition also reflects an institutional shift. In December 2025, the former Federal Inland Revenue Service officially rebranded as the Nigeria Revenue Service, aligning its identity with its expanded mandate.
With implementation now underway, attention will turn to how effectively the new system can deliver on its promises particularly in improving compliance, enhancing transparency, and unlocking the long-overlooked potential of Nigeria’s mining industry.
If successful, the reform could redefine how the country generates and manages revenue in the years ahead.
