Fiscal Policy: Runs girls to begin tax payment from January 2026 – Taiwo Oyedele

The Federal Government has reaffirmed that all income earned within Nigeria is subject to taxation — including earnings from sex work, popularly referred to as “runs girls.”

This clarification was provided by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a recent tax awareness session held at the City of David parish of the Redeemed Christian Church of God in Lagos. A clip from the session has since gone viral.

Oyedele explained that gifts and upkeep money sent to family, friends, or even strangers are considered non-exchange transactions and therefore not subject to tax, provided the giver has already paid tax on the original income.

“You earn a certain amount of money and send upkeep to your cousin, your brother, even a stranger — that’s not taxable,” he said. “It is you that should have paid tax before giving them the gift.”

However, he clarified that any income earned in exchange for goods or services is taxable, regardless of the legality or moral context of the activity.

“If somebody is doing ‘runs girl’, they go and look for men to sleep with — that’s a service, and they must pay tax on it,” Oyedele stated. “The tax law does not distinguish between legal and illegal sources. The question is simple: Did you earn an income? If yes, then you’re required to pay tax.”

Oyedele also encouraged Nigerians not to focus solely on the controversial aspects of the new fiscal reforms, comparing such selective attention to the parable of blind men attempting to describe an elephant.

The tax reform framework, signed into law earlier this year, is expected to take effect in January 2026. It is widely regarded as the most ambitious tax reform in Nigeria’s history, containing over 200 amendments across more than 400 pages of legislation.

Among the key highlights of the new framework are:

• Income tax exemption for individuals earning less than ₦800,000 annually

• Tax reliefs for small businesses with:

  • Annual turnover not exceeding ₦100 million

  • Total assets below ₦250 million

• Exemptions from company income tax, capital gains tax, and the new development levy

The reforms also aim to harmonise tax rules, reduce multiple taxation, ease compliance, and minimize disputes between taxpayers and government agencies.