Runs Girls To Pay Compulsory Tax In Nigeria

In a major clarification that has stirred public debate, the Nigerian government has definitively stated that all forms of income earned within the country, including earnings from highly controversial, “Runs Girls”or “immoral” services, are subject to taxation. This sweeping declaration, which includes revenues generated by those colloquially termed ‘runs girls’ (commercial sex workers), is a direct consequence of the nation’s new fiscal and tax reform laws set to take effect from January 1, 2026.

The clarification was made by Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Speaking recently on the comprehensive changes to the nation’s tax code, Oyedele explained that the guiding principle of tax legislation is the generation of income, not the legality or morality of the source.

The Inclusivity of Tax Law

According to the tax expert, Nigerian law makes no distinction regarding the legitimacy or illegitimacy of an income-generating activity. If a service is rendered or a product is provided in exchange for payment, that income immediately attracts a tax obligation.

“The core of the tax law is simple: Did you receive income? Did that income arise from a transaction where you provided a service or a good? If the answer is yes, you are required to pay tax,” Oyedele stated. He explicitly cited the example of commercial sex workers as a “service” falling under this broad, source-agnostic definition of income.

More Than Just Controversial Income

The inclusion of controversial income sources is merely an illustration of the new law’s expansive reach. The new framework is primarily designed to modernize and simplify the nation’s chaotic tax system while significantly widening the tax net to capture the booming digital and informal economies.

Under the new law, remote workers, social media influencers, and other players in the digital space who earn income even from foreign companies are now unambiguously required to self-declare and remit their taxes to the appropriate authorities in Nigeria. The expectation is that government agencies will leverage data on financial transactions to trace and penalize individuals who fail to comply.

Context of the Sweeping Reforms

The focus on fringe income, however dramatic, risks overshadowing the broader and more significant aspects of the reforms, which Mr. Oyedele described as the most transformative in Nigeria’s history. The key changes, which consolidate and streamline multiple existing laws, include:

• Relief for Low-Income Earners: Workers earning below an annual threshold of ₦800,000 will be entirely exempted from paying personal income tax.
• Support for Small Businesses: Companies with an annual turnover below a specified benchmark are fully exempt from Company Income Tax, providing a significant boost to micro, small, and medium enterprises.
• Simplification and Harmonization: The goal is to reduce the multitude of existing taxes and levies, ease compliance, and eliminate the confusion and disputes arising from overlapping taxes collected by different tiers of government.

The new tax act, signed into law earlier this year, is scheduled for full implementation starting January 1, 2026, allowing all stakeholders six months to prepare and align with the new fiscal calendar. The government’s position remains firm: as the nation searches for sustainable revenue in a post-oil era, the principle of taxing all income—no matter the source—is now the fundamental cornerstone of the country’s economic future.