The Federal Government has restated that all income in Nigeria is taxable, including money earned by commercial sex workers.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this during a tax education session held recently at the Redeemed Christian Church of God, City of David, Lagos.
Oyedele explained that gifts or money sent to dependents for upkeep are not taxable, describing such transfers as “non-exchange transactions.”
However, he stressed that once payment is made for a product or service, tax must be paid, regardless of whether the activity is legitimate.
“If somebody is doing runs girls, that’s a service — they will pay tax on it. Tax law does not separate whether what you are doing is legitimate or not. It only asks whether you have an income,” he said.
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Oyedele also urged Nigerians not to focus on isolated aspects of the reforms, likening such an approach to the parable of the blind men and the elephant.
The new tax laws, which take effect from January 1, 2026, are described as the most far-reaching in Nigeria’s history. They consolidate existing statutes into a single regime to simplify compliance and curb multiple taxation disputes.
Key provisions include exemption from personal income tax for workers earning below N800,000 annually, and relief for small businesses with a turnover of up to N100 million and assets not exceeding N250 million, which will be exempt from company income tax, capital gains tax, and the new development levy.
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