NRS Pledges Transparent Administration of Mining Royalties Under New Law

NRS Pledges Transparent Administration of Mining Royalties Under New Law

By Solomon Odeniyi

The Nigeria Revenue Service has assured stakeholders in the mining sector of transparent and accountable administration of mining royalties under the country’s newly introduced tax framework.

The assurance was given during a stakeholders’ engagement session on the implementation of the new mining royalty administration system following recent fiscal reforms signed into law by President Bola Tinubu.

Speaking at the event, the Executive Director of the Government and Large Taxpayers Directorate at the NRS, Amina Ado, said the agency was committed to ensuring fairness, efficiency, and accountability in the collection of royalties and related mining revenues.

She explained that, under the new legal framework, the responsibility for collecting mining royalties and associated fees in the solid minerals sector has officially been transferred to the Nigeria Revenue Service beginning from January 1, 2026.

According to her, the reform is aimed at eliminating revenue leakages, improving compliance, and strengthening transparency within Nigeria’s mining industry.

Ado noted that while the Ministry of Solid Minerals Development would continue to regulate mining activities and provide production, pricing, and geological information, the NRS would oversee the fiscal and revenue administration aspect of the sector.

She added that the new arrangement would create a more coordinated and simplified system for operators, reducing multiple taxation concerns and improving ease of compliance for legitimate miners.

The NRS also stressed that the reforms would help address the long-standing challenges of illegal mining and weak oversight that have affected revenue generation in the sector for years.

Ado warned that illegal operators and criminal groups had continued to exploit Nigeria’s mineral resources in several parts of the country, particularly in mineral-rich states, due to inadequate monitoring and enforcement mechanisms.

She therefore encouraged mining companies and artisanal miners to formalise their operations, stating that compliance with the new framework would provide legal protection, operational stability, and better engagement with government institutions.

Industry stakeholders at the meeting reportedly welcomed the reforms, expressing optimism that improved transparency and accountability could boost investor confidence and enhance government earnings from the solid minerals sector.

The Federal Government has continued to push for reforms in the mining industry as part of broader efforts to diversify the economy and reduce dependence on oil revenues.