By Adenike Lawal
The Federal Government has announced that commercial sex workers will now be required to pay taxes under Nigeria’s reformed fiscal framework.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this during an interactive session at the Redeemed Christian Church of God’s City of David parish in Lagos.
He explained that the new tax regime is not concerned with the legality or morality of income sources but strictly with whether individuals earn money from providing services or selling goods.
“Whether someone is involved in sex work or any other informal service provision, it is still considered an economic activity,” Oyedele said. “If you provide a service, even one regarded as morally questionable, you are expected to pay tax on the income earned.”
He emphasized that the law’s scope is defined by income generation. “The law simply asks: ‘Did you earn income?’ If yes, and it came from rendering a service or selling a product, then it is taxable,” he added.
Oyedele, however, clarified that gifts and non-exchange transfers, such as money sent to relatives, friends, or strangers without expectation of service or goods in return, are not taxable.
“These reforms are part of broader initiatives to modernize and expand Nigeria’s tax base,” he said, citing newly enacted legislations including the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
