Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said that under Nigeria’s new tax law, all income earned from providing services will be subject to taxation, regardless of the nature of the service.
Oyedele made the clarification while speaking at the Redeemed Christian Church of God, City of David, Lagos, during a recent public engagement on the upcoming fiscal reforms.
He explained that personal transfers such as upkeep money sent to dependants or relatives are considered “non-exchange transactions” and are not taxable. However, any income derived from rendering a service or selling goods will attract tax.
“You earn a certain amount of money and you have to send upkeep to your cousin, your brother, even a stranger, it doesn’t really matter. If the amount you’re sending to someone is money you are giving to them as a gift, that’s not taxable,” Oyedele said.
He added that the law does not distinguish between legal and illegal sources of income but rather focuses on whether income was earned through service provision.
“If somebody is doing runs girls… that’s a service, they will pay tax on it,” he said, using the colloquial term for sex workers.
Oyedele stressed that the new tax framework is designed to broaden the tax base and ensure fairness in revenue collection. The new tax law is expected to take effect from January 1, 2026.
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