By our reporter
Beginning January 1, 2026, individuals involved in sex work, popularly referred to as “runs” in Nigeria, will be required to pay taxes on their income, according to the Federal Government’s new tax reform agenda.
This announcement was made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a public engagement on the upcoming changes to Nigeria’s tax system. Oyedele explained that the government is working toward broadening the nation’s tax base and ensuring that all sources of income—regardless of their legality—are brought under the tax net.
“The law doesn’t differentiate whether your income is from a legitimate source or not. The key question is: did you earn money? If you did, then you are required to pay tax on it,” Oyedele stated.
He further emphasized that sex workers, including those involved in informal or underground activities commonly referred to as “runs,” will no longer be exempt from taxation simply because their line of work is considered socially or legally controversial.
“If someone is doing ‘run girls’ business, they will be taxed. If you’re making income, regardless of the source, you should be contributing to national development through tax,” he added.
This development is part of a wider fiscal overhaul aimed at improving Nigeria’s revenue generation and reducing the country’s overreliance on oil earnings. Under the new tax regime, personal income tax laws will be revised to include individuals and informal workers who have previously operated outside the formal tax structure.
While the move may be seen as controversial, analysts say it reflects global trends where tax authorities are seeking to tap into informal economies as a way of boosting government revenue and improving public accountability.
However, the policy is already sparking debate among legal and human rights communities, especially given that sex work remains illegal or heavily restricted in many parts of Nigeria. Critics are questioning the legal basis of taxing income from an activity that is not legally recognized, and whether such a policy could further criminalize or endanger those working in the informal sex industry.
Questions also remain around enforcement. How will authorities identify sex workers? Will they be required to register or declare their earnings publicly? What measures will be put in place to protect them from stigma or legal repercussions?
The government has not yet released detailed guidelines on enforcement, compliance, or whether thresholds and exemptions will apply to low-income earners in the sex trade.
Despite these concerns, the Federal Government appears committed to implementing the reforms as part of a larger strategy to overhaul Nigeria’s fiscal framework. Oyedele noted that the new policy is intended to create a fairer, more inclusive tax system where all contributors to the economy are held accountable, irrespective of social status or occupation.
The reforms are expected to come into full effect by January 1, 2026, giving time for public consultations, stakeholder engagement, and potential legal clarifications.
As the implementation date approaches, the conversation around taxation, legality, and economic inclusion is expected to intensify across the country.
