Nigerians have been taken aback after Prof. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, declared that all income earned from providing services must be taxed regardless of whether the work is formal, informal, or even unconventional.
Speaking during a tax education session at the Redeemed Christian Church of God (RCCG), City of David, Lagos, Prof. Oyedele stressed that Nigerian tax law on services is based purely on income.
According to him, the law is unconcerned with the legitimacy of the activity that generates the money.
Clarifying a common misconception, the tax reform chief explained that money given freely as upkeep or support is not taxable.
He described such transactions as “non-exchange” payments.
“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,” Oyedele said.
He emphasized that in such cases, the giver is expected to have paid tax on their own income before offering it as a gift.
While reinforcing the principle of fairness, Oyedele noted that anyone providing a service must remit tax, no matter how unconventional the work may be.
“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,” he stated.
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His remarks, which have since gone viral, surprised many Nigerians who assumed that taxation applied only to corporate workers and registered businesses.
The comments came against the backdrop of the Federal Government’s new tax reforms, which were enacted in June and will take effect from January 1, 2026.
According to Oyedele, the changes are extensive and are designed to simplify compliance while expanding Nigeria’s revenue base.
“The starting point for me is always to give context,” he said, likening the tax reforms to the parable of a blind man and an elephant warning against focusing on only one aspect of the law.
He explained that the new legislation consolidates existing tax laws into a single framework and applies uniformly across individuals, employees, business owners, and civil servants.
With more than 200 significant changes included, the reforms mark one of the most ambitious fiscal overhauls in recent years.
Moreover, they reveal that the informal sector which accounts for a large share of Nigeria’s workforce is no longer outside the reach of government revenue collection.
Meanwhile, Oyedele reassured the public that gifts, upkeep, and similar non-exchange payments would remain exempt from taxation.
“So if you give upkeep to anyone, they are free. They won’t pay tax on it,” he clarified.
Furthermore, it reflects the government’s determination to balance equity with wider revenue collection.
