Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, says income earned by commercial sex workers will be taxed under Nigeria’s new tax regime.
Speaking in a video posted on X on Monday, Oyedele explained that the law does not distinguish between legitimate and illegitimate sources of income but focuses on whether money was made through goods or services.
“There is this extreme example… if somebody is doing runs, they go and look for men to sleep with. You know that is a service, they will pay tax on it,” he said.
He stressed that the new system only asks whether an individual earns income, regardless of the source. “Did you get it from rendering a service or providing a good? Then, you pay tax,” he added.
In contrast, Oyedele clarified that upkeep money sent to relatives, friends, or strangers is classified as a gift and is therefore not taxable.
“You earn a certain amount of money and you have to send upkeep to your cousin, your brother, even a stranger, it doesn’t really matter. If the money is given not in exchange for a service or product, then it is a gift. We call it a non-exchange transaction. That is not taxable,” he said.
According to him, while the giver of such gifts is expected to have already paid tax on their income, the recipients are not subject to further tax obligations.
President Bola Tinubu had, on June 26, signed four key tax reform bills into law. They include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
The newly gazetted tax laws are scheduled to take effect from January 1, 2026.
