The Taxation of an Age-Old Profession
The taxation of an age-old profession has sparked mixed reactions across Nigeria. “You can’t criminalise vocation, yet subject it to tax,” some argue, as the government’s new policy targets a sector that has long operated in the shadows of the law. Known colloquially as “runs girls,” these women engage in relationships with multiple men for financial benefit. Their economy is vast, informal, and largely untaxed—a parallel financial universe where billions of Naira exchange hands, unseen by the government’s revenue radar.
The Tax Reform Policy
The tax reform policy has been a topic of national discourse for obvious reasons. For the government, it is a policy that will bring in more revenue into its coffers; for the payee, it is one that will take out more money from his pocket. However, the government has embarked on a huge enlightenment campaign to sell the benefits of the reform policy to the public. In doing this, and owing to the quantum of the tax “business” he now superintends, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has had to talk about it constantly to get the message across.
“We want to reduce the burden on businesses, promote competitiveness, equity and ease of compliance and tax avoidance, detect tax evasion and reflect what is happening globally. We are creating an exemption for withholding tax small businesses and what we have in mind is N50 million. We have reduced the rate for real businesses to as low as two per cent—people producing goods and services because the margins are very small. We have created an exemption for manufacturers—so if you are a manufacturer, don’t worry about withholding tax. If you provide input to manufacturers like farmers, don’t worry about withholding tax,” Oyedele had explained at a forum in June 2024.
The “Runs Girls” and Taxation
Yet, this exemption may after all have to be taken over by some other categories of workers or “producers.” Last week, Oyedele, during a tax education session in Lagos, made a pronouncement that has kept the cyber space buzzing with his declaration that from January 2026, the income of “runs girls” would be subject to taxation. His logic, delivered during a tax education session at a Lagos church, was starkly legalistic, deliberately divorced from moral judgment: “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. One thing about the tax law is it does not separate between whether what you are doing is legitimate or not. It just asks you whether you have an income.”
The Economic Impact of the “Runs Girls” Industry
A 2024 survey, widely circulated on social media, attempted to quantify this behemoth in Lagos State alone. The figures are nothing short of astronomical. The survey estimated that in 2024, men in Lagos spent a staggering N661 billion to satisfy their sexual urges with commercial sex workers. Of this, N329 billion was paid directly to the women for their services, while the remaining N332 billion was spent on associated costs: lavish dinners, hotel rooms, gifts, drugs, and sexual enhancers.
Crucially, the survey illuminated the profound economic ripple effect of this income, demonstrating that the N329 billion earned was not hoarded but actively and immediately injected back into the formal and informal economies. A significant portion, N93 billion, was cycled into the beauty and pharmaceutical sectors through spending on body and skin maintenance products. Furthermore, the industry served as a crucial source of financial support for extended families, with N62.5 billion sent home to relatives, while another N62.5 billion fueled commerce in clothing, accessories, real estate through rent, and the transportation industry.
Voices from the Shadows
But Oyedele’s position on taxing “runs girl” has been met with a mixture of disbelief, anger, and cynical amusement by the women it targets. For instance, a 24-year-old runs girl who operates in high-end hotels in Abuja, Amara (not real name), laughed hysterically when told about the policy. “Tax? On what? The money I use to treat my body and feed my family? Let me ask you, how will the taxman know how much I make? Will he be there in the hotel room to count the cash? Or will my ‘clients’ now ask for a receipt? This is just another way for them to harass poor people. The police are already collecting their own ‘tax’ by arresting us and demanding bail money. Now the Federal Inland Revenue Service (FIRS) wants its own share. They should go and tax the politicians first.”
Global Precedence
Nigeria is not the first country to grapple with the conundrum of taxing sex work, a challenge that forces a government to define its stance on legality, labour, and legitimacy. In Europe, the model is one of pragmatic integration. Germany’s foundational Act to Regulate the Legal Situation of Prostitutes (ProstG) of 2002 formally recognises sex workers as self-employed individuals. This status, governed by standard German tax law (EStG §4 & §), requires them to register a business, obtain a tax number, and file annual returns, allowing deductions for everything from professional attire to workplace rent.
Between Pragmatism and Peril
Economists, legal experts and social commentators in the country are divided on the feasibility and ethics of the proposal. A Lagos-based public finance economist, Dr. Oluwaseun Adebayo, sees logic in the move. “From a purely economic standpoint, the principle of horizontal equity in taxation demands that all income, regardless of source, should be taxed equally. This massive informal economy distorts the market and deprives the state of crucial revenue that could be used for public goods. The N329 billion figure, if even half of it is taxable, represents a significant revenue stream. The intent to broaden the tax base is correct. However, the ‘how’ is a nightmare. Without decriminalisation or a specific legal framework that protects these women and provides a clear mechanism for compliance, this is more of a philosophical statement than a practical policy.”
The Challenge
The chasm between Oyedele’s legal pronouncement and its practical execution is vast, raising the critical question of how the Federal Inland Revenue Service (FIRS) could possibly operationalise this policy. The first and most fundamental hurdle, according to Mgbeoma is assessment and declaration: “Would sex workers be expected to formally file annual tax returns, declaring their gross income and then itemising deductible business expenses such as condoms, outfits, and hotel costs?”
This scenario, he said, seems fanciful, if not entirely absurd, within a context defined by widespread social stigma and active criminalisation of their profession.
Reflections
A public policy analyst, Mayowa Sodipo, may have summed up the diverse submissions of stakeholders’ views, especially the “paradoxical” position submission of Dr. Emmanuel. He argued that contemplating taxing “runs girls” is a stark reflection of the country’s enduring contradictions- a deeply religious society with a sprawling informal economy; a state with ambitious revenue targets but weak institutional capacity; a legal system that criminalises an activity whose economic contribution it now seeks to harness.
For the women like Amara, Jennifer and Bimpe, the taxman’s announcement is just another potential predator in a landscape already filled with danger. It underscores their precarious position—exploited by clients, harassed by police, judged by society, and now pursued by the treasury, all while being denied the basic protections and recognition afforded other workers.
