The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that Nigeria’s newly enacted tax reform laws will apply to all income sources, without distinguishing between legitimate and illegitimate work.
Signed into law in June, the reforms merge four key legislations: the Nigerian Tax Act (NTA), the Nigerian Tax Administration Act (NTAA), the Nigerian Revenue Service (Establishment) Act (NRSEA), and the Joint Revenue Board (Establishment) Act (JRBEA). The NRSEA and JRBEA are set to begin on 26 June 2025, while the NTA and NTAA will take effect from 1 January 2026.
During a “Tax Compliance and Planning” session with the Redeemed Christian Church of God (RCCG), streamed on YouTube on 26 September, Oyedele noted that anyone earning income from providing a service would be liable to pay tax.
“If someone is rendering a service, such a person will pay tax. There’s this extreme example that you probably should not even say in a church, but just to bring it home, if somebody is doing runs with girls. They go and look for men to sleep with. You know, that’s a service. They will pay tax on it. One thing about the tax law is that it does not separate whether what you are doing is legitimate. 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’re free. They won’t pay tax.”
He explained that the reforms also cover social media influencers and Nigerians engaged in remote work for foreign companies, particularly those earning in foreign currency.
According to Oyedele, while the reforms seek to broaden Nigeria’s revenue base amid shrinking oil income and rising fiscal pressures, they are structured to reduce the tax burden on 90 per cent of Nigerian workers.
