NRS pledges transparent administration of mining royalties under new law

The Nigeria Revenue Service (NRS) has committed to a transparent and fair administration of mining royalties, following the enactment of new tax laws that place the collection of these fees under its purview. President Bola Tinubu signed the reforms into law in June 2025, with the changes taking effect from January 1, 2025.

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Since the first of January this year, by the tax laws signed in June 2025 by His Excellency President Bola Ahmed Tinubu, the collection of mineral royalty and other fees in the solid minerals sector have come under the purview of NRS.

Amina Ado, Executive Director of the Government and Large Taxpayers Directorate of the NRS, announced the agency's pledge during a mining stakeholders' workshop. She stated that the reforms are designed to address persistent challenges in the sector, such as illegal mining, inadequate oversight, and significant revenue leakages.

Under the new framework, the Ministry of Solid Minerals Development retains its role as the sector regulator, responsible for providing geological, pricing, and production data. However, mining operators will now have a single point of contact for their fiscal obligations. "One framework. One assessment. One door to knock on. That is Nigeria Revenue Service," Ado explained.

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One framework. One assessment. One door to knock on. That is Nigeria Revenue Service.

This consolidation aims to reduce the burden of multiple and overlapping demands on operators, fostering a more predictable and transparent system that encourages compliance. Ado emphasized the NRS's commitment to administering tax laws in a manner that supports the mining sector's growth and formalization, rather than solely focusing on taxation. "We hear the concerns of the mining community. We will administer the tax laws in the spirit of a Service that wants the sector alive, formal, and thriving not just taxed," she said.

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When many bodies may each lay a claim on the same operator, no single body carries the cost of over-reach and so the demands multiply, the burden becomes unknowable, and the sector retreats from view.

The agency highlighted that a major historical challenge has been the lack of formal government oversight over much of the mining activity. This vacuum has allowed illegal operators, foreign syndicates, and armed groups to exploit resources in regions like Zamfara, Niger, and Kaduna, often without licenses or accountability. The NRS urged operators to embrace formalization, promising predictability, legal protection, and improved security for licensed miners.

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We hear the concerns of the mining community. We will administer the tax laws in the spirit of a Service that wants the sector alive, formal, and thriving not just taxed.