Income earned by commercial sex workers will now be taxable under Nigeria’s updated fiscal laws, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, confirmed on Monday.
In a video posted on X, Oyedele explained that the new tax system does not distinguish between legitimate and illegitimate sources of income, focusing solely on whether money is earned from goods or services.
“If somebody is providing a service — even in commercial sex work — they will pay tax on it,” he said.
Oyedele clarified that gifts or money sent to relatives, friends, or strangers are not taxable, as they are classified as non-exchange transactions. Recipients of such gifts are not liable for tax, though the giver should have paid tax on their income.
The new regulations are part of broader reforms under four bills signed into law by President Bola Tinubu on June 26, including the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.