FG Insists Commercial Sex Workers Must Pay Tax

Federal Government has announced plans to tax commercial sex workers, locally referred to as “runs girls,” starting January 2026. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, this move aims to cast a wide net and include all income earners, regardless of the legitimacy of their work.

Key Points of the New Tax Law

Taxation of Illicit Income, The law doesn’t distinguish between legitimate and illegitimate income; all services rendered in exchange for money will be taxed.

Effective Date, The tax law is set to take effect from January 2026.

-Other Affected Groups, Social media influencers and remote workers earning in foreign currency will also be taxed.

-Exemptions, Individuals earning below ₦800,000 per year will be exempt from paying income tax, and small business owners will be fully exempt.
-VAT and Corporation Tax, VAT remains at 7.5%, and corporation tax stays at 30%, but corporation tax for medium and large firms will be reduced to 25% from 2026

This move is part of a broader effort to reform Nigeria’s tax system, with the goal of increasing revenue and promoting economic growth