Nigeria's solid minerals sector is undergoing a fundamental fiscal restructuring following the enactment of the Nigeria Tax Act (NTA) 2025. The reform dismantles the previously fragmented revenue collection framework and places the industry squarely within a unified tax administration system.
The centrepiece of this change is **Section 64(4) of the NTA 2025**, which designates the **Nigeria Revenue Service (NRS)** as the exclusive body responsible for assessing, collecting, and accounting for solid mineral royalties across the federation. This represents a complete transfer of financial oversight from the Ministry of Solid Minerals to the NRS.
To entrench this shift, **Section 197(9) of the NTA 2025** amends the Nigerian Minerals and Mining Act, 2007 by deleting **Sections 28 and 33** — the provisions that previously conferred revenue administration powers on the Ministry. While the Ministry retains its regulatory and technical mandate, including licence issuance and the setting of official pricing benchmarks, the NRS now controls every financial gateway in the sector.
For investors and traders entering this reconfigured landscape, understanding where compliance responsibility falls is essential. **Section 64(3) of the NTA 2025** imposes royalty on any mineral obtained through exploration or mining operations, without exception.
**Section 20(1)(a) of the Nigeria Tax Administration Act (NTAA) 2025** reinforces this by requiring every person engaged in the trade or business of mining to file a monthly self-assessment return of minerals royalty with the NRS. This means that commercial traders — including those who source raw minerals from artisanal miners — are expected to serve as the primary compliance point, even if they do not hold mining licences themselves.
Royalty rates are set under the **Eighth Schedule to the NTA 2025** and vary by mineral classification. Base metals such as Lead and Zinc Ore attract a rate of **7.5%**. Higher-value industrial and battery minerals, including Lithium Ore and Pulverised Kaolin, are subject to a **10%** royalty. Precious metals occupy the top tier, with Gold attracting the highest statutory rate of **15%** , calculated against official market value benchmarks.
The filing deadline is rigid. **Section 20(2) of the NTAA 2025** requires operators to compile and submit their monthly returns on or before the **21st day of the succeeding month**, with detailed disclosures covering mineral type, weight, and operational location.
Failure to comply carries significant financial consequences. **Section 123(1) of the NTAA 2025** provides that any royalty remaining unpaid for 30 days triggers an automatic **10% administrative penalty**, plus compound interest pegged to the Central Bank of Nigeria's Monetary Policy Rate.
The legislative overhaul signals that solid minerals trading is no longer an informal frontier. For market participants, the NTA 2025 recasts regulatory compliance as both a legal requirement and a mechanism for building credibility and accessing growth opportunities within a transparent fiscal framework.
