Sex Workers’ Earnings Are Subject to Tax, FG Insists
The Federal Government has declared that sex workers in Nigeria are not exempt from taxation, insisting that income from their trade qualifies as taxable earnings under existing laws.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made the clarification during a tax education session organised by the Redeemed Christian Church of God, City of David, Lagos.
Oyedele explained that Nigeria’s tax laws do not differentiate between legitimate and illegitimate sources of income, stressing that once money is earned from providing a service, tax must be paid.
“If somebody is involved in sex work, that’s a service. The income from it is taxable,” Oyedele stated in a now-viral video. “Tax laws do not ask whether what you are doing is morally right or wrong; they only ask if you have earned an income.”
He added that while gifts or upkeep money sent to relatives and dependants are not taxable, payments for any form of service or product fall under taxable income.
The tax reform chief urged Nigerians to understand the broader context of the ongoing reforms, which he described as the most sweeping in Nigeria’s history. According to him, the new regime, which takes effect from January 2026, will simplify the tax system, reduce disputes, and improve compliance.
Under the new law, workers earning less than ₦800,000 annually will be exempt from personal income tax, while small businesses with turnovers below ₦100 million and assets not exceeding ₦250 million will enjoy multiple exemptions, including company income tax and capital gains tax.
Oyedele stressed that the reforms are designed to impact every segment of society, including employees, business owners, and civil servants, while ensuring fairness in the tax system.
