The Federal Government has reaffirmed that all income earned in Nigeria is subject to taxes, including money earned by “runs girls,” also known as sex workers.
In a widely shared video from a tax awareness event hosted by the Redeemed Christian Church of God in the City of David, Lagos, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, provided this explanation.
Oyedele noted that maintenance or financial assistance given to family members, dependents, or strangers is not subject to taxes because it is considered a “non-exchange transaction.”
He clarified: “It doesn’t really matter if you make a certain amount of money and you have to pay maintenance to your brother, cousin, or even a complete stranger.
The money you send someone is not taxable if it is money you are giving them as a gift. Before you gave them a gift, you ought to have paid taxes.
The head of the reform committee clarified, however, that regardless of the legality of the transaction, money received in exchange for any kind of good or service is taxable income.
“You know that’s a service, and they will pay tax on it,” he stated. “If someone is running a sex business, they go and find men to sleep with.
One aspect of the tax code is that it does not distinguish between what you are doing and what is legal. It only inquires as to whether you are employed.
Did you obtain it by offering goods or services? Taxes are paid by you.
Oyedele compared a blind man trying to describe an elephant to the public concentrating solely on the contentious parts of the reforms.
The tax framework has been characterized as the most ambitious reform in Nigeria’s tax history. It was signed into law earlier this year and is expected to go into effect in January 2026. He claims that it includes more than 400 pages of legislation with more than 200 amendments.
“With more than 400 pages and more than 200 major changes, it is very easy and could be tempting to narrow it down to one issue,” he continued. That would be committing the same error as the elephant and the blind man.In order to facilitate compliance and lessen disputes involving multiple levies, the new framework harmonizes tax laws. Its highlights include exemptions from company income tax, capital gains tax, and the recently implemented development levy for individuals making less than N800,000 per year, as well as reliefs for small businesses with assets under N250 million and turnover under N100 million.
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