Tax law covers all income, illicit or legitimate, even ‘runs girls,’ FG clarifies

The Federal Government has reiterated that all income earned in Nigeria, whether from lawful businesses or illicit activities, is subject to taxation. It noted that even income earned by ‘runs girls’ (prostitutes) for their services are taxable.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, stated this during a tax education session at the Redeemed Christian Church of God, City of David, Lagos, in a video that has since gone viral.

Oyedele explained that money given as gifts or upkeep to relatives and dependants does not attract tax, as such transfers are classified as “non-exchange transactions.” However, he emphasised that once money is received in return for goods or services, it qualifies as taxable income.

“One thing about the tax law is it does not separate between whether what you are doing is legitimate or not. It just asks you whether you have an income,” Oyedele said.

“If somebody is doing runs girls, right, they go and look for men to sleep with, you know that’s a service, they will pay tax on it. The tax law does not separate between whether what you are doing is legitimate or not. It just asks whether you have an income.”

He noted that the new tax reforms, which come into effect on January 1, 2026, represent the most comprehensive overhaul in Nigeria’s history, with more than 200 substantive amendments aimed at simplifying compliance and improving transparency.

The regime exempts workers earning below N800,000 annually from personal income tax, while businesses with turnover of up to N100 million and assets not exceeding N250 million are exempt from company income tax, capital gains tax, and the new development levy.

According to Oyedele, the goal is to create a fairer system that broadens the tax net while protecting low-income earners and small enterprises.