Commercial Sex Workers Must Pay Tax Under New Laws -FG

Federal Government Declares Commercial Sex Workers Must Pay Tax Under New Laws

The Federal Government has announced that individuals engaged in commercial sex work will now be required to pay taxes under the newly reformed tax laws.

This development was disclosed by Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a stakeholder engagement session held at the Redeemed Christian Church of God, City of David, in Lagos.

Oyedele explained that the tax laws do not differentiate between legal and illegal sources of income. According to him, taxation is based on whether a service or product was offered in exchange for money.

“If somebody is doing ‘runs girls,’ they go and look for men to sleep with—that’s a service. They will pay tax on it,” Oyedele stated. “The law does not ask whether the income is from a legitimate or illegitimate activity. 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.”

He further clarified that money given as gifts—such as financial support sent to family, friends, or strangers—will not be taxed, as such transactions are considered non-exchange and fall outside the tax net.

The revised tax framework is governed by multiple statutes, including the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.

The government says the reforms are aimed at promoting inclusivity in tax compliance and broadening the country’s revenue base.