Prof. Taiwo Oyedele, Chairman of the Federal Government Tax Reforms Committee, has emphasized that individuals earning income through any form of service are liable to pay tax, regardless of the legality of their work.
Speaking on the principles of taxation, Prof. Oyedele explained that the tax law focuses on income, not the legitimacy of the activity generating it.
Cash given as gift exempted
He noted that money given as gifts or for non-exchange purposes, such as supporting family members, does not attract tax.
“if the amount you’re sending to someone is money you are giving to them for hardware spending, it’s not because they have done something for you. That is considered a gift or a non-exchange transaction, and it is not taxable,” he said.
Prof Taiwo Oyedele’s Runs girl analogy
However, he clarified that income earned from rendering a service, including informal or unconventional services, is subject to taxation. “If a person is renting a service, they pay tax. One extreme example is runs girls, they provide a service, and tax law does not differentiate whether it’s legitimate or not. It simply looks at whether you have an income from providing a service or a good,” Prof. Oyedele stated.
He reassured that while those providing services are liable for taxes, recipients of gifts or upkeep remain exempt from taxation.
His words in full …
“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 for hardware spending, it’s not because they have done something for you, right?
Yeah, so it’s a gift. Yeah, thank you. Like a gift. We say non-exchange transaction. You give someone because it is something for you, then that’s not taxable. It is you that should have paid tax before giving them a gift.
But if a person is renting a service, you know, and there’s this extreme example that you probably should not even say in the chat, but just to bring it home. If you are doing, not you, if somebody is doing runs girls, right, they go and look for men to sleep with. You know that’s a service. They will pay tax on it. See why I did not want to use the example before. One thing about the tax law, it does not separate between whether what you are doing is legitimate or not. It doesn’t even ask you. It just asks you whether you have an income. Did you get it from renting a service or providing a good? You pay tax. So if you give upkeep to anyone, they are free. They won’t pay tax on it……”
Watch video below …
If you’re doing runs girl’, it means you’re rendering a service. Therefore, you’re liable to pay tax”. Tax law doesn’t care if it’s legal or illegal
~ FG Tax Reforms Chairman, Prof. Taiwo Oyedele says pic.twitter.com/zkSZOcfKsd
— Nigeria Stories (@NigeriaStories) September 29, 2025