The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has stated that under Nigeria’s new tax laws, income earned by commercial sex workers is considered taxable, as the legislation focuses on the nature of an earning rather than its legality.

Speaking in a recent video, Oyedele used the example to illustrate that the tax system does not distinguish between legitimate and illegitimate businesses, but rather on whether money was earned from providing a service or a good.

“There is this extreme example… if somebody is doing runs, they go and look for men to sleep with. You know that is a service, they will pay tax on it,” Oyedele explained. “One thing about the tax law, it does not separate between whether what you are doing is legitimate or not… 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.”

In contrast, the tax expert clarified that money sent as upkeep to relatives, friends, or even strangers is classified as a gift and is not taxable for the recipient.

“If the amount you are sending is money you are giving to them not because they have done something for you, then it is a gift. We call it a non-exchange transaction. That is not taxable,” he said. He added that while the giver would have already paid tax on that income, the recipient incurs no further tax obligation.

The new tax laws—comprising the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act—were signed into law by President Bola Tinubu on June 26. The gazetted laws are scheduled to take effect on January 1, 2026.