Following a recent report that estimated that N661bn was spent in Lagos State sex and prostitution in 2024, the Director of MO Africa Consulting, an advisory and consulting firm, Mr. Kayode Omosebi, has called for policy initiatives that would enable the government to tap into the sector’s economic potential.
According to the report by MO Africa Consulting, this amount was spent by men seeking sexual services from prostitutes, commonly referred to as ‘Runs Girls’, ‘Ashawo’, ‘Akuna’, or ‘Olosho’.
Out of the total N661bn, N329bn was paid directly to sex workers, while N332bn was spent on associated costs.
An analysis of Lagos’ 3.1 million sexually active men aged 20 to 69 across the state’s 20 local government areas revealed that 1.86 million engaged in transactional sex with non-partners.
The study found that the average rate charged by sex workers was N36,750 per encounter, with the lowest being N20,000 and the highest reaching N100,000 in Eti-Osa LGA.
In contrast, Alimosho LGA recorded the lowest rates at N20,000. The average number of transactional sex encounters per month was one, totalling 12 per year.
On how the N329bn received by sex workers was spent, the study revealed that a significant portion went to body and skin maintenance, family support (Black Tax), self-care, business and investment, as well as health and education.
Speaking exclusively to THE WHISTLER, Omosebi acknowledged that directly taxing the sex and prostitution industry would be difficult due to religious and cultural sensitivities.
However, he suggested that the government could benefit by formalising industries linked to the sector, such as short-let apartments, condom manufacturing, sexual enhancers, and sex accessories.
He pointed out that Lagos’ internally generated revenue (IGR) stands at approximately N800bn.
With the sex economy estimated at N600bn, he argued that by formalising linking sectors, the state could increase its IGR by 50 per cent within two years.
“The opportunity for the government is to focus on formalising the informal sectors that are tied to it. For example, short-let apartments are not yet regulated. And you can regulate and get tax from it,” Omosebi said.
“The state government IGR is like N800bn and the sex economy is like N600bn. It just tells you that if you formalise certain sectors, you can increase your IGR by 50 per cent in two years. Example: betting is already formalised, and you see the potential in it.
“It tells you that when you look at areas around short-let, herbal drinks, condom manufacturing and co., trying to see how you can drive them into this market, you can boost your IGR.”
He highlighted the importance of creating an enabling environment to support related industries to the sex and prostitution economies.
Beyond creating an enabling environment to support linking sectors, Omosebi stressed the need for investment in sex education and primary healthcare to prevent health crises in the state.
“It’s more of an indirect policy around the sector. You see the money, you follow the money to where it’s coming from or where it’s going, and then create a policy on how you can support that place. Then, you create an enabling environment.
“The other side is advocacy and education. Since you know that in your state, this is what’s happening there; improve on primary healthcare, sexual education, so that you can avoid a health crisis,” he stated.
The study surveyed over 10,000 sex workers and 15,000 men in three months to quantify the economic impact of commercial sex work, assess its market value, and analyse the key players involved.
