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The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oloyede, has addressed confusion around taxable income and clarified why certain payments, such as gifts and upkeep, are exempt from taxation while earnings from services — including sex work — are not.
In an interview that surfaced on X on Monday, Oloyede explained that the Nigerian tax system is focused on income derived from services or goods, not money freely given as gifts. According to him, financial assistance or upkeep provided to family, friends, or even strangers is not taxable, as long as it is not linked to the provision of a service.
“If the amount you’re sending to someone is money you are giving to them…it’s not because they have done something for you. Yeah, so it’s a gift…you give someone because it is something for you, then that’s not taxable,” he clarified.
However, Oloyede emphasized that once money is earned in exchange for a service, it qualifies as taxable income — irrespective of whether the service is considered legitimate or socially acceptable.
To drive home his point, he used a controversial example that has since sparked conversations online. He said: “If somebody is doing runs girls, right, they go and look for men to sleep with…that’s a service, they will pay tax on it. One thing about the tax law is it does not separate between whether what you are doing is legitimate or not…it just asks you whether you have an income. Did you get it from renting a service or providing a good, you pay tax.”
This statement has generated wide reactions, particularly because sex work is illegal in Nigeria. Some critics argue that taxing earnings from activities deemed unlawful could create a contradiction, while others believe Oloyede’s example simply illustrates how tax law applies universally to all sources of income.
Oloyede nonetheless reiterated that the law is straightforward: income made from services must be taxed, while gifts remain exempt. He stressed that the principle of taxation does not discriminate between industries but simply identifies whether money was earned in exchange for a product or service.
By highlighting the distinction, the tax reform chairman sought to reassure Nigerians that financial support or gifts will not be penalized under the law, but also warned that those generating income — no matter the profession — are required to pay their dues.
His remarks underline the government’s renewed push to improve tax compliance and broaden the country’s revenue base, a key part of ongoing fiscal reforms.
Watch him speak below…
Olosho will pay Tax.
— Duru Bond (@Bond_not_james) September 29, 2025
Cc: @taiwoyedele Pt10 pic.twitter.com/4udDXS1wL7
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