Professor Taiwo Oyedele, who chairs the Federal Government’s Tax Reforms Committee, says Nigerian tax law requires anyone earning income from services to pay tax, whether their work is legal or not.
Oyedele explained that the country’s tax system focuses on income earned, not whether the activity generating it is lawful.
He drew a clear line between taxable income and personal gifts. Money sent as upkeep or allowances doesn’t qualify as taxable income because it’s not payment for goods or services.
“If the amount you’re sending to someone is simply for upkeep or general spending, and not because they’ve done something for you, that is considered a gift or a non-exchange transaction. It is not taxable,” he said.
But income from any service is a different matter. Oyedele used an extreme example to make his point: sex work.
“If a person is rendering a service, they must pay tax.
An extreme example is sex work; it is a service, and tax law does not differentiate whether it is legitimate or not.
It only considers whether you earned income from providing a good or service,” he stated.
He added that people receiving gifts or upkeep money don’t owe tax on those funds. The tax obligation falls on the giver, who should have already paid tax on their income before sharing it.
