From Policy to Practice: How Nigeria is Strengthening Revenue Drive Through the Mining Sector*

From Policy to Practice: How Nigeria is Strengthening Revenue Drive Through the Mining Sector*
From Policy to Practice: How Nigeria is Strengthening Revenue Drive Through the Mining Sector*

 

By Arabinrin Aderonke 

Nigeria’s new tax laws are not just policy on paper, they are being taken seriously, and their scope is already expanding in practical and impactful ways. One of the clearest signals of this commitment is the decision to vest the Nigeria Revenue Service with the responsibility of collecting mineral royalties from mining operators across the country. 

This development reflects a deliberate effort to streamline revenue administration, improve efficiency, and strengthen government earnings from the solid minerals sector.
While the announcement was made public last week, it is important to note that this transition did not happen overnight. 


A joint committee comprising representatives of both the Nigeria Revenue Service and the Ministry of Solid Minerals Development has been in place for some time, meeting regularly to work through the modalities and ensure a smooth and well-coordinated handover. The public disclosure therefore marks the culmination of sustained institutional collaboration rather than a sudden policy shift.


Effective January 1, 2026, the Nigeria Revenue Service formally assumed this role, marking a significant shift in how mineral royalties are managed. Previously handled within the Ministry of Solid Minerals Development, the responsibility has now been transferred in line with the new tax laws signed by President Bola Ahmed Tinubu on June 26, 2025. These laws empower the revenue service to administer all federally collectable revenues, ensuring a more centralised and coordinated system.


Importantly, this transition does not diminish the role of the Ministry of Solid Minerals Development. Rather, it redefines it. The ministry continues to serve as the technical backbone of the sector, providing critical inputs such as mineral pricing data, geological intelligence, and industry coordination. This separation of roles allows each institution to focus on its strengths. 

While the revenue service drives collection efficiency, the ministry ensures technical accuracy and sectoral integrity.
The outcome of the recent meeting in Abuja between the Minister of Solid Minerals Development, Dele Alake, and the Chairman of the Nigeria Revenue Service, Zacch Adedeji, underscores the importance of collaboration in making this transition successful. Their joint commitment signals a unified approach to governance, one that prioritises clarity, cooperation, and results.


For mining operators, the implications are both clear and consequential. A new, modernised system of royalty administration is being introduced, featuring an end to end digital platform designed to simplify filing and payment processes. This is a welcome development in a sector that has often grappled with inefficiencies and opacity. By leveraging technology, the government is not only improving compliance but also making it easier for operators to meet their obligations.


Equally important is the emphasis on stakeholder engagement. Both institutions have agreed to embark on a nationwide sensitisation programme to guide operators through the new framework. This proactive approach recognises that reform is most effective when those affected understand both the what and the why. Regular technical sessions will also be held to address emerging issues, ensuring that the system remains responsive and adaptive.


At its core, this reform is about building trust. By assuring stakeholders of a transparent and orderly implementation process, the government is sending a strong message that accountability and fairness will underpin the new regime. For operators, compliance is no longer just a regulatory requirement; it is part of a broader national effort to harness Nigeria’s mineral wealth for sustainable development.

In a country seeking to diversify its revenue base beyond oil, the solid minerals sector holds immense promise. However, unlocking this potential requires more than just resources beneath the ground. It demands strong institutions, clear policies, and efficient systems. The integration of mineral royalty collection into the Nigeria Revenue Service is a step in that direction.


Ultimately, this is a reform that aligns policy with practice. It demonstrates that when laws are backed by political will and institutional cooperation, meaningful change is possible. For Nigeria, it is a reminder that the path to economic resilience lies not only in what we have, but in how well we manage it.

_Arabinrin Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Executive Chairman of the Nigeria Revenue Service. She writes from Abuja._

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