Commercial S3x Workers’ Income Will Be Taxed Under New Law – Oyedele

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that under Nigeria’s revamped tax framework, income from all services, including sex work, is taxable.

In a video circulating on X, Oyedele explained that the new tax system is focused on income generation, regardless of how the money is earned.

“The law does not differentiate between legal or illegal income when it comes to taxation,” he said. “If you provide a service or sell goods and earn income, that income is subject to tax.”

While sex work is not officially recognised under Nigerian law, Oyedele’s comments suggest that tax authorities will now focus on earnings, not the legality of the profession.

The tax expert emphasized that the broader goal is to expand the tax net and ensure equity in contributions to public revenue.

“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.

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“One thing about the tax law, it does not separate between whether what you are doing is legitimate or not, it doesn’t even ask you.

“It just asks you whether you have an income. Did you get it from rendering a service or providing a good? Then, you pay tax.

“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 amount you are sending is money you are giving to them not because they have done something for you, then it is a gift. We call it a non-exchange transaction. That is not taxable,” he added.

He noted that while the giver of a gift is presumed to have already paid tax on their income, recipients are not subject to additional tax obligations.

On June 26, President Bola Tinubu signed four tax reform bills into law: 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 laws are set to take effect on January 1, 2026.