The Federal Government has clarified that all income earned in Nigeria, including proceeds from sex work commonly referred to as “runs girls,” is taxable under the law.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this known in a now-viral video from a tax education session at the Redeemed Christian Church of God, City of David, Lagos.
Oyedele explained that while gifts and upkeep money given to dependants or relatives are not taxable, being classified as “non-exchange transactions”, any payment made in exchange for goods or services attracts tax, regardless of the nature of the activity.
“If somebody is doing runs girls, they go and look for men to sleep with, that’s a service. They will pay tax on it. The tax law does not separate between whether what you are doing is legitimate or not. It just asks if you have an income,” he said.
He stressed that the principle of taxation is based on income generation, not the legality of the trade.
Oyedele urged Nigerians to view the recently enacted reforms holistically rather than focusing on isolated issues. He described the changes, which take effect from January 1, 2026, as the most transformative in Nigeria’s fiscal history, with over 200 amendments across more than 400 pages of legislation.
The reforms consolidate existing tax statutes into a single regime designed to simplify compliance, curb multiple taxation, and broaden the tax net.
Under the new framework, individuals earning less than ₦800,000 annually will be exempt from personal income tax, while small companies with turnover not exceeding ₦100 million and assets below ₦250 million will not pay company income tax, capital gains tax, or the new development levy.
Oyedele maintained that the reforms are intended to create a fairer, more efficient tax system that will impact individuals, employees, employers, and businesses across board.
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