AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
For a Nigerian subsidiary with a 31 December year end, the company income tax return with audited accounts is due within six months, by 30 June, according to PwC; the annual return with audited accounts goes to the CAC within 42 days after the AGM, and AGMs must be held every year with no more than 15 months between them. From 1 April 2026 the audit must be done by a firm on the FRC's register. The UAE parent's own consolidation deadline usually needs the audit earlier still.
The Nigerian deadlines
| Obligation | Deadline | Source |
|---|---|---|
| Company income tax return (with audited accounts) | Within six months after financial year end, or 18 months after incorporation if earlier | PwC tax administration summary, May 2026 |
| Extension | Up to two months at the NRS's discretion | PwC |
| Transfer pricing declaration and disclosure | Filed alongside the tax return | Grant Thornton, Jan 2025 |
| AGM | Every year, no more than 15 months after the last; first within 18 months of incorporation | CAMA s.237 (LawGlobalHub) |
| CAC annual return with audited accounts | Within 42 days after the AGM | PwC CAMA compliance guide |
PwC gives the late filing penalty for the tax return as ₦100,000 for the first month and ₦50,000 for each later month. The CAC's fee schedule gazetted in May 2025 lists a one-off late annual return penalty of ₦2,000 for a private company, plus ₦200 for each day of default. Transfer pricing penalties are much larger: Grant Thornton gives the penalty for a missed disclosure as the higher of ₦10 million or 1% of the controlled transactions, plus ₦10,000 a day, so a subsidiary with transactions with its UAE parent should treat the TP filing as part of the audit timetable. The CAC side is explained in CAC annual returns: deadlines and penalties.
The auditor must be on the FRC register
Leadership reported in February 2026 that the Financial Reporting Council's National Audit and Assurance Firms Register became mandatory from 1 April 2026. Only registered firms may undertake audit and assurance engagements; engagements by unregistered firms are deemed invalid, and the engaging entity can face sanctions. Reporting entities should verify both the firm and the signing audit professional before appointment. If your group's UAE auditor is using a Nigerian network firm or a local partner, ask for evidence of registration before the engagement letter is signed.
Can the subsidiary skip the audit?
CAMA 2020 gives small companies relief. A 2021 Udo Udoma & Belo-Osagie summary on Mondaq gives the small company limits as turnover up to ₦120 million and net assets up to ₦60 million, and says small companies do not have to file audited financial statements annually and need not hold AGMs. Whether a subsidiary with a foreign corporate shareholder can be a small company under the Act's definition is a point to confirm with a Nigerian lawyer before relying on it, and the UAE parent will usually want audited figures for consolidation anyway. See audit exemption for small Nigerian companies.
Building the timetable backwards
Example timetable for a 31 December 2026 year end, assuming the UAE parent needs audited subsidiary figures by the end of March 2027 for its own reporting. The parent's date is an assumption; replace it with yours.
- Early December 2026: agree audit plan, confirm the FRC registration of the firm, set stock count and bank confirmation dates.
- January 2027: close December, reconcile intercompany balances with the parent in the agreed currency, revalue foreign balances.
- February 2027: fieldwork; transfer pricing documentation updated for transactions with the parent.
- March 2027: signed accounts to the parent for consolidation.
- By 30 June 2027: company income tax return with audited accounts and TP declaration filed with the NRS.
- AGM held within 15 months of the last one; CAC annual return within 42 days after it.
The tight point is usually intercompany reconciliation. If the subsidiary's "due to parent" and the parent's "due from subsidiary" do not agree, both audits stall. Settle the currency and rate policy early; see multicurrency books for UAE and Nigerian entities.
Agree the timetable with both audit teams in writing. Where the UAE parent's auditor relies on the Nigerian auditor's work, it will usually send group instructions with its own reporting dates and formats; reconcile those with the Nigerian statutory timetable so the local team is not asked to deliver two different sets of figures on two dates. Holding one planning call with both firms before year end saves weeks later. Put the agreed dates in the subsidiary's board minutes so that the AGM, the CAC filing and the tax return are tracked as one plan rather than three separate reminders.
What auditors will ask a foreign-owned subsidiary for
- The Certificate of Capital Importation for the parent's investment and any loans.
- Loan agreements and interest computations, with withholding tax receipts.
- Service agreements for any management fees charged by the parent.
- Bank confirmations for naira and domiciliary accounts.
- Board and shareholder resolutions for the year.
Where Pryme fits
Auditors ask for statements they can rely on. A Pryme account holder can generate verifiable statements and receipts through VerifyDoc.ai that an auditor can check are unaltered; see verifiable statements for auditors. The Compliance agent can keep the deadline calendar and document requests, with a person approving what is sent.
Questions people ask
When is a Nigerian subsidiary's tax return due?
Within six months after its financial year end, or 18 months after incorporation if earlier, according to PwC. A 31 December year end means 30 June.
Does the auditor need to be FRC registered?
Yes, from 1 April 2026 only firms on the FRC's National Audit and Assurance Firms Register may undertake audits, as reported by Leadership.
When does the CAC annual return go in?
Within 42 days after the AGM, with audited accounts, according to PwC's CAMA compliance guide.
Can a foreign-owned Nigerian subsidiary claim the small company audit exemption?
Check with a Nigerian lawyer. The thresholds are summarised in the Mondaq article cited, but eligibility depends on the Act's full definition.
Sources
- PwC Worldwide Tax Summaries: Nigeria corporate tax administration (reviewed 29 May 2026) · accessed Oct 2026
- PwC Nigeria: Key compliance obligations under CAMA 2020 and CR 2021 · accessed Oct 2026
- LawGlobalHub: Section 237 CAMA 2020 (annual general meeting) · accessed Oct 2026
- Grant Thornton: Transfer pricing in Nigeria, 1 Jan 2025 · accessed Oct 2026
- Leadership via AllAfrica: FRC audit firms register mandatory from April 2026, 16 Feb 2026 · accessed Oct 2026
- Mondaq (Udo Udoma & Belo-Osagie): CAMA 2020 small companies, 8 Jan 2021 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.