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
A private company that meets CAMA 2020's small-company test (turnover of ₦120 million or less, net assets of ₦60 million or less, no foreign or government members, and directors holding at least 51 per cent of shares) is exempt from audit under section 402, unless it is a bank, insurer or other prescribed company. For tax, every company still files a return each year, and a small company under the tax law may submit a statement of accounts attested by the taxpayer instead of audited financial statements. The two definitions of small are different, so a company can be small for one and not the other.
The CAMA test for a small company
Section 394(3) of the Companies and Allied Matters Act 2020 treats a company as small if all of these apply:
- It is a private company.
- Its turnover is not more than ₦120 million.
- Its net assets are not more than ₦60 million.
- None of its members is an alien, a government or a government corporation or agency.
- Its directors, between them, hold at least 51 per cent of its equity share capital.
Section 402 then exempts from the audit requirements, for a financial year, a company that has been dormant since incorporation or that qualifies as a small company under section 394. The exemption is not available if, at any time in that year, the company was an insurance company, a bank or another company the CAC has prescribed. Note the foreign-member condition: a startup with a foreign investor on its register fails the test however small it is.
The tax test is different
Under the Nigeria Tax Act 2025, effective 1 January 2026, a small company for tax purposes has turnover of ₦100 million or less and fixed assets of ₦250 million or less, and pays 0 per cent company income tax and no development levy, according to WTS Blackwoodstone's summary on Mondaq. For VAT, Forvis Mazars notes professional service providers are excluded from the small business definition.
On filing, section 11(1) of the Nigeria Tax Administration Act 2025 requires every company to file a self-assessment return each year whether or not it is liable to tax, and lets a small company submit a statement of accounts attested by the taxpayer in place of audited financial statements. In other words, the tax law relaxes the audit requirement for its own small companies, but not the filing requirement.
Comparing the two tests
| CAMA 2020 (audit) | Nigeria Tax Act 2025 (tax) | |
|---|---|---|
| Turnover | Not more than ₦120 million | ₦100 million or less |
| Assets | Net assets not more than ₦60 million | Fixed assets ₦250 million or less |
| Ownership | No foreign or government members; directors hold 51%+ | No ownership test in the summaries we read |
| Effect | Exempt from audit (s.402) | 0% CIT; may file attested statement of accounts |
Worked examples
Company A: small for tax, not for CAMA
Turnover ₦90 million, fixed assets ₦70 million, net assets ₦75 million, Nigerian shareholders who are directors. For tax it is small (turnover under ₦100 million, fixed assets under ₦250 million), pays 0 per cent and may file an attested statement of accounts. For CAMA its net assets exceed ₦60 million, so it is not small and its accounts must be audited for company law purposes.
Company B: small for CAMA, not for tax
Turnover ₦110 million, net assets ₦40 million, Nigerian director-shareholders. Under CAMA it is small and exempt from audit. For tax its turnover is above ₦100 million, so it pays company income tax and does not get the attested-statement concession. In practice it will usually need audited financial statements to file its tax return, even though company law does not require an audit.
Company C: small for both, with a foreign investor
Turnover ₦30 million, net assets ₦10 million, but 10 per cent of shares held by a foreign fund. It is small for tax, but the alien-member condition means it is not small under section 394, so the CAMA audit exemption does not apply.
Thresholds are tested each financial year, so a company can move in and out of the exemption as it grows. Check the figures at each year end before telling your accountant no audit is needed.
What an exempt company still has to do
- Prepare annual financial statements. The audit exemption removes the audit, not the accounts.
- File the annual return with the CAC. PwC's CAMA compliance guide says it is due within 42 days after the AGM; single-member companies have their own rules, so check the CAC portal.
- File the annual tax return with the NRS, within six months of the year end for established companies.
- Keep books and records for at least six years after the year of assessment (section 31 of the 2025 Administration Act).
Banks, lenders, investors and tender panels often ask for audited accounts regardless of the legal minimum. If you plan to borrow or bid for contracts in the next year, an audit may be worth paying for anyway. For timing, see choosing your accounting year end, and for the tax side, small company tax under the 2025 Act.
Where Pryme fits
Whether or not you are audited, clean records make the year end cheaper. A Pryme Business Account gives you statements for each currency, the Finance agent can prepare reconciliations for your accountant, and you can issue verifiable statements through VerifyDoc.ai when a bank or tender panel asks for proof of your account history.
Questions people ask
Do small companies need to be audited in Nigeria?
Not if they meet CAMA 2020's small-company test in section 394 and are not banks, insurers or other prescribed companies. Section 402 exempts them from audit.
What is a small company under CAMA 2020?
A private company with turnover not above ₦120 million, net assets not above ₦60 million, no foreign or government members, and directors holding at least 51 per cent of shares.
Do I need audited accounts to file tax with NRS?
A small company under the tax law may file a statement of accounts attested by the taxpayer instead. Larger companies generally file audited financial statements.
Does an audit-exempt company still file with CAC?
Yes. The exemption removes the audit, not the duty to prepare accounts and file the annual return.
Sources
- Companies and Allied Matters Act 2020 (full text) · accessed Oct 2026
- Section 402 CAMA 2020: exemption from audit (LawGlobalHub) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- The Nigerian tax reforms: what it means for MSMEs and individuals (Mondaq, WTS Blackwoodstone) · accessed Oct 2026
- Nigeria's tax reform in focus: 2025 NTA VAT key business changes (Forvis Mazars) · accessed Oct 2026
- Key compliance obligations under CAMA 2020 and CR 2021 (PwC Nigeria) · 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.