FG Declares All Income Taxable: Commercial Sex Workers to Pay Tax from January 2026 Under New Reforms

Nigeria’s Federal Government has announced a sweeping update to its fiscal policy, confirming that all income earners including commercial sex workers will be mandated to pay taxes under reforms set to take effect in January 2026.

The directive was confirmed by Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. According to Oyedele, the new tax laws are designed to be comprehensive and treat every source of income equally, regardless of its legality.

Speaking at an event in Lagos, Oyedele stated that the new framework makes no distinction between income streams.

“For example, if someone is involved in transactional sex what is often referred to as ‘run girls’—that is considered a service. They will be required to pay tax on it,” he explained.

This statement confirms that income generated from services rendered in exchange for money, even sexual transactions will be subjected to taxation. The chairman added that the law itself is not capable of distinguishing between legitimate and illegitimate earnings, meaning all income is taxable.

The inclusion of sex workers’ income in the tax net is part of a broader overhaul aimed at simplifying Nigeria’s tax system and boosting the national revenue base.

Under the new framework, the Federal Inland Revenue Service (FIRS) has been rebranded as the Nigeria Revenue Service (NRS), which will now oversee revenue collection previously managed by multiple agencies, including Customs and the Nigerian Ports Authority.

Additionally, individuals earning ₦800,000 or less annually will be exempt from paying income tax, while small business owners will also enjoy full exemption. Starting in 2026, the corporate tax rate for medium and large firms will be reduced from 30 percent to 25 percent.

The move to tax all income streams, including the earnings of sex workers, has sparked debate. Supporters argue it will create fairness across all sectors and increase government revenue, while critics raise concerns about enforcement and the moral implications of taxing illegal activities.

Nevertheless, the Federal Government insists the reforms are necessary to expand Nigeria’s tax net, strengthen fiscal accountability, and secure more sustainable revenue sources ahead of the 2026 rollout.