All Income Taxable -Sex Work Not Exempt,Oyedele Warns

All Income Taxable — Sex Work Not Exempt, Oyedele Warns

 

 

 

Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has stated that income earned by commercial sex workers will be taxed under Nigeria’s new tax regime.

 

Speaking in a video posted on X on Monday, Oyedele said the tax laws focus on the source of income, not whether it is legally or socially accepted.

 

“The tax law does not differentiate between legitimate and illegitimate sources of income. It only asks whether you earned money by providing a service or selling a product. If you do, then it is taxable,” Oyedele explained.

 

He used commercial sex work as an example, noting that income earned from offering such services falls within the scope of taxable income.

 

Oyedele added that money sent as gifts or upkeep to relatives, friends, or even strangers is not taxable, as it is considered a non-exchange transaction. “Recipients do not pay tax on gifts. The giver is responsible for taxes on their income, but the receiver has no additional obligations,” he said.

 

President Bola Tinubu signed four tax reform bills into law on June 26, 2025. These include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. The new laws, recently gazetted, will take effect on January 1, 2026.

 

Oyedele’s comments are part of ongoing efforts to ensure that all forms of income are properly captured within the country’s formal tax system.