FG confirms income of ‘runs girls’ taxable under new reforms

Taiwo Oyedele

-Special Report-

Nigeria’s Fiscal Overhaul to Include Taxation of Commercial Sex Workers

In a landmark shift within Nigeria’s fiscal policy landscape, the Federal Government has announced that income earned by commercial sex workers will be subject to taxation beginning January 1, 2026.

This directive is part of a sweeping set of reforms signed into law by President Bola Tinubu on June 26, 2025, aimed at broadening the country’s tax base and reducing dependence on oil revenues.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made the announcement during a tax education session at the Redeemed Christian Church of God, City of David parish in Lagos. He emphasized that the new tax laws do not distinguish between legitimate and illegitimate sources of income. Instead, the framework focuses solely on whether money was earned through the provision of goods or services. According to Oyedele, sex work qualifies as a service, and therefore, income derived from it is taxable under the new system.

Oyedele clarified that the law is not concerned with the moral or legal status 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,” he stated. He further explained that the tax law does not ask whether the activity is legitimate; it simply asks whether income was earned. If so, tax must be paid.

The reforms also make a clear distinction between taxable income and non-taxable gifts. Money sent to relatives or friends as upkeep, without any service rendered in return, is classified as a “non-exchange transaction” and is exempt from taxation. Oyedele noted that the giver of such gifts is presumed to have already paid tax on their income, and the recipient is not liable for further tax obligations.

The new tax laws consolidate existing legislation into a unified framework, including the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. These laws are designed to simplify compliance, promote equity, and enhance revenue generation across all sectors of the economy.

Under the revised structure, the Federal Inland Revenue Service (FIRS) has been renamed the Nigeria Revenue Service (NRS), which will now assume revenue collection responsibilities previously held by agencies such as the Nigeria Customs Service, NUPRC, NPA, and NIMASA. Individuals earning ₦800,000 or less annually will be exempt from income tax, while a 25% personal income tax will apply to those earning above ₦50 million. Small business owners will also enjoy full exemption from income tax.

The announcement has sparked widespread debate, particularly in light of a recent report indicating that men in Lagos spent an estimated ₦661 billion on transactional sex in 2024. Of this amount, ₦329 billion was paid directly to sex workers, with the remainder covering associated costs such as entertainment and hospitality.

The report also highlighted that many sex workers contribute to family upkeep, education, healthcare, and small business investments, underscoring their role in the informal economy.

Oyedele urged Nigerians to view the reforms in their entirety rather than focusing on isolated examples. He likened the situation to the parable of blind men describing different parts of an elephant, stressing the importance of understanding the broader picture. The reforms also extend to other informal sectors, including social media influencers and remote workers earning income in foreign currency.

As Nigeria prepares for the implementation of these transformative reforms, the inclusion of commercial sex workers in the tax net signals a bold move toward fiscal inclusivity and a redefinition of taxable economic activity in the country