The Nigerian government has announced a new tax policy that will take effect in January 2026, targeting individuals in the informal sector, including prostitutes, social media influencers, and freelancers.
The decision, according to the Federal Inland Revenue Service (FIRS), aims to expand the country’s tax base and increase revenue collection. Officials say the informal sector has long remained untaxed despite generating substantial income, and this move seeks to ensure all income earners contribute fairly to national development.
Under the new policy, people earning from sex work, online influencing, brand deals, and freelance services such as writing, design, and consulting will be required to declare and pay taxes on their income.
Experts have, however, raised concerns about how the government will implement and enforce this measure, given that most informal workers operate outside official systems and often earn in cash.
Despite these concerns, the government insists the new policy will promote financial transparency, reduce dependence on oil revenue, and create a more inclusive tax structure.
Further details on the registration and payment processes are expected to be released before the 2026 rollout.
