The Federal Government has reiterated that all earnings made within Nigeria are taxable, extending this to money obtained by sex workers locally referred to as runs girls.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy & Tax Reforms, said the new tax regime does not discriminate between ‘legitimate’ and ‘illegitimate’ income what matters is that some service is rendered in exchange for payment.
Under the new legislation, income derived from all forms of services will be subject to taxation from 1 January 2026, and sex work is not exempted.
The article is relatively short and frames the announcement as a reaffirmation that income from all sources will be taxable under the upcoming reforms. It uses the example of “runs girls” as illustrative of the government’s broader intent to capture more of the informal economy under the tax net.
To understand how the government can legally claim “runs girls” earnings are taxable, we need to look at the definitions and provisions in the new law. Below are the relevant provisions and interpretations.
Key Features of the NTA / Consolidated Reform
The Nigeria Tax Act, 2025 was signed into law on June 26, 2025.
The NTA repeals and consolidates multiple legacy tax statutes (e.g. Personal Income Tax Act, Capital Gains Tax Act, etc.) into a unified framework.
It becomes effective January 1, 2026.
Under the NTA, income of any individual and profits or gains are now explicitly chargeable under one unified scheme.
The law adds clarity to the inclusion of nontraditional income sources: prizes, honoraria, grants, awards, digital/virtual asset gains, etc., are explicitly taxable.
Some key definitions and rules relevant for assessing whether a sex worker’s earnings could be taxed:
The NTA states that income tax will be imposed on the “profits or gains of any company income of any individual and income arising, accruing or due to a trustee or an estate.
It explicitly includes “chargeable gains” (which were previously covered under the Capital Gains Tax regime) under the consolidated income tax regime.
The law expands the definition of interest, dividend, and royalties to cover more forms of payments, including foreign exchange differences, derivatives, etc.
Under the new tax regime, nonemployment incomes (e.g., payments for services, fees, etc.) are clearly within the taxable base.
The NTA retains or introduces personal reliefs and presumptive rules (though adjusted) that may exempt low income levels. For example, individuals earning ₦800,000 or less per year may be exempt from personal income tax under the new law.
Thus, if a sex worker’s income is small and below statutory thresholds, she may not owe tax or may owe very little.
The law also allows deductions and allowances (e.g. for pension contributions, certain prescribed deductions) which reduce taxable income.
Some forms of transfers (like gifts or “upkeep”) may not be taxable if there is no exchange of service. The article in Daily Post mentions that “gifts or upkeep” money may be exempt under the new regime. (Though we should check the statute itself for express language.)
Interpretation & Issues in Applying to “Runs Girls” (Sex Workers)
The government’s argument is that income from any service is taxable if it is received in exchange for that service. The Daily Post article quotes Oyedele saying that the tax law does not differentiate legitimacy if a service is rendered and payment is made, it falls under taxable income.
Under the NTA, non-traditional service payments are within the expanded tax base, meaning there is a statutory basis to tax service-income beyond conventional employment or business.
Also, social stigma, potential legal prohibitions, and privacy/rights issues may complicate enforcement or compliance.
Whether it will generate substantial revenue depends on whether many in that sector voluntarily comply or are compelled, and whether it is cost effective for tax authorities to pursue them.
Post a Comment
Leave a Reply