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According to the Nigerian federal government, commercial sex workers will now be required to pay taxes on the money they receive from their services as a result of tax reforms that President Bola Tinubu’s administration plans to implement.
Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made this announcement in a now-viral video recording of a tax education session held by the Redeemed Christian Church of God in the City of David, Lagos.
“The law on taxation does not ask whether the business itself is legitimate or not, but it makes income taxable as long as payment is made for a product or service,” he explained, explaining that the law supporting the new tax reforms scheduled to take effect in 2026 requires taxes to be paid for any service or product as long as payment is made for such.
However, it was stated that the chairman of the presidential committee stressed that maintenance funds given as presents to dependents or family members are not taxable, calling them “non-exchange transactions” and adding that the sender is assumed to have fulfilled their tax obligations.
He stated, “It doesn’t really matter if you make a certain amount of money and you have to provide maintenance to your brother, cousin, or even a complete stranger.”
It is not taxable if the money you are sending someone is money you are giving them as a gift. You ought to have paid taxes before presenting them with a gift.
“You know that’s a service, and if someone is running females, they go and find men to sleep with, but they will be taxed for it.
The tax law does not distinguish between what you are doing and what is legal, which is one of its features. All it does is inquire if you are employed.
Did you receive it via delivering a good or a service? You are liable for paying taxes.
Oyedele, however, advised Nigerians to view the tax reforms holistically, taking into account the advantages they would provide, rather than as a means for the government to extort money from the populace.
He underlined that the changes, which are intended to streamline the tax code and increase compliance, would affect people, entrepreneurs, workers, employers, and government personnel.
As he put it, “I always start by providing context.” The first item, the first message, is a picture of an elephant and a blind man.
They arrived at the conclusion that it was either a fan, a wall, or a tree based on which side of the elephant they had touched. They failed to see the larger picture, though, therefore none of them received the correct response.
“I can tell you that the tax reforms that were passed into law a few months ago and will go into effect in January of next year are the most important and revolutionary changes in the history of our country.
With more than 400 pages and more than 200 major modifications, it is quite simple and may be tempting to focus on only one problem. The blind man and the elephant would both have made the same error.
