Nigeria Introduces Taxation for Commercial Sex Workers Under New Revenue Laws

Nigeria’s Federal Government confirms that all income-generating activities, including commercial sex work, are taxable under the new revenue laws.
The clarification comes as part of a broader effort to ensure that all income, regardless of source, contributes to government revenue.
Monetary transfers considered gifts or upkeep sent to relatives, friends, or strangers remain exempt from taxation.
The updated tax regime is grounded in the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
President Bola Tinubu officially signed the tax reform bills into law on July 26, 2025.

The Federal Government of Nigeria has announced that commercial sex workers, often referred to locally as ‘runs girls,’ will now be required to pay taxes under the country’s recently reformed tax legislation.

This move forms part of a comprehensive effort to ensure that all sources of income, whether conventional or unconventional, are included in the nation’s tax base.

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According to officials, the new laws do not make distinctions between lawful or illicit income. Any earnings derived from providing services or selling goods fall under the scope of taxable income.

The clarification was made during a public engagement session with stakeholders in Lagos, highlighting the government’s commitment to enforce a more inclusive tax system.

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The authorities further explained that money transferred to family members, friends, or even strangers for upkeep or as gifts is not subject to taxation.

Such transactions are classified as non-exchange transfers, meaning they are not considered income in the context of tax law.

The reformed taxation framework includes four key legislations: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.

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These laws, signed into effect by President Bola Tinubu on July 26, 2025, aim to broaden the tax net, promote compliance, and increase national revenue collections.

This announcement underscores the government’s effort to modernize Nigeria’s tax system, ensuring fairness and consistency in revenue collection while clarifying what constitutes taxable income.