The Federal Government of Nigeria has clarified that all income earned within Nigeria, including money made by commercial sex workers, social media influencers, and remote workers, will be subject to taxation under the country’s new tax reform laws, set to take effect from January 1, 2026.
This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a tax education session hosted by the Redeemed Christian Church of God (RCCG), City of David, Lagos.
In a widely circulated video from the session, Oyedele explained that while gifts and personal transfers are exempt from taxation, any income earned from the provision of services or sale of goods is taxable — regardless of the legality of the activity.
“If somebody is doing runs girls, right, they go and look for men to sleep with, you know that’s a service, they will pay tax on it,” Oyedele said.
“The tax law does not distinguish between legitimate and illegitimate activities. It simply asks: did you earn income? If yes, then you are liable to pay tax.”
Gift Money Not Taxable, But Earned Income Is
Clarifying further, Oyedele noted that “non-exchange transactions” — such as money sent to family members or dependents — are not subject to tax, provided the sender has already paid taxes on their own income.
“You earn a certain amount of money and you send upkeep to your cousin, your brother, even a stranger… That’s not taxable. The tax applies to you, not the person you’re gifting it to,” he explained.
New Tax Law Targets All Earned Income in Nigeria
The comprehensive tax reforms, which were passed into law in June 2025, aim to streamline Nigeria’s tax system, increase compliance, and broaden the country’s revenue base. The reforms consolidate over 200 significant changes into a single legal framework, affecting Business owners, Employees and civil servants, Freelancers and digital workers, Social media influencers, Commercial sex workers, Remote workers earning in foreign currencies
“One thing I can tell you is that the tax reforms enacted into law a few months ago… is the most transformative, most significant in our nation’s history,” Oyedele said.
Economic Impact of Nigeria’s Sex Industry
The clarification comes amid growing public interest in the economic scale of transactional sex in Nigeria. According to a 2024 report by The Guardian, men in Lagos alone spent an estimated ₦661 billion on commercial sex, with ₦329 billion paid directly to sex workers and the rest spent on associated costs like transportation, food, and hotel accommodation.
The study also revealed that many sex workers contribute financially to family needs, including healthcare, education, and small-scale businesses, further embedding their role in the local economy.
Government Urges Nigerians to Focus on the Bigger Picture
Oyedele urged citizens not to fixate on the mention of “runs girls” but to see the broader picture of the reforms, which are designed to promote equity, transparency, and revenue accountability.
“Depending on which side of the elephant you touch, you might think it’s a fan, a wall, or a tree — but none of those give you the full picture,” he said, using a parable to caution against misinterpretation.
He emphasized that the foundation of the new tax law is income generation, not the morality or legality of the activity involved.
“If someone is rendering a service, such a person will pay tax,” he concluded.
