The Federal Government has clarified that every form of income generated within Nigeria is subject to taxation, including money earned by commercial sex workers.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, made this known during a recent tax sensitisation session organised by the Redeemed Christian Church of God, City of David, in Lagos.
Oyedele explained that while upkeep money and financial gifts to relatives or dependants are exempted from taxation because they fall under “non-exchange transactions,” any income derived from services or trade—legitimate or otherwise—remains taxable under Nigerian law.
He said, “If you earn a certain amount of money and decide to give it to your cousin, brother, or even a stranger as a gift, that’s not taxable. But once you are paid for a service or product, the law requires you to pay tax on it.”
Using a blunt illustration, Oyedele noted that sex workers, popularly referred to as “runs girls,” fall under taxable income earners because they render services in exchange for money.
He added, “The tax law does not discriminate between whether what you are doing is legitimate or not. It simply asks whether you have an income. If you do, then you are required to pay tax.”
The tax chief further urged Nigerians to view the ongoing reforms beyond isolated examples, stressing that the new regime represents the most sweeping change in the nation’s tax history.
According to him, the reforms, which come into effect on January 1, 2026, consolidate all existing statutes into a unified tax framework designed to reduce complexities, improve compliance and curb multiple taxation disputes.
He said, “With over 200 significant changes and more than 400 pages of provisions, it is easy for people to narrow their focus to one area and miss the big picture. But the truth is, this is the most transformative reform in our nation’s tax system.”
The new law exempts workers earning below ₦800,000 annually from personal income tax, while small businesses with turnover of less than ₦100 million and assets not exceeding ₦250 million will also enjoy relief from company income tax, capital gains tax, and the new development levy.
Oyedele maintained that the ultimate goal of the reform is to simplify tax administration, encourage voluntary compliance, and ensure fairness across all levels of income earners.
