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 Nigerian company paying a non-executive director who lives abroad deducts withholding tax on the directors' fees before paying: 20% for a non-resident individual and 15% for a resident, under the Deduction of Tax at Source (Withholding) Regulations 2024 as summarised by PwC and BusinessDay. Payment is normally in naira to a Nigerian account, against a board-approved fee and a WHT receipt showing your Tax ID; travel costs reimbursed separately on receipts are treated differently from the fee.
What a non-executive director is paid
Diaspora Nigerians with banking, technology, medical or legal careers abroad are increasingly asked to sit on the boards of Nigerian companies: family businesses formalising their governance, start-ups adding experienced directors before a raise, microfinance and insurance firms that must meet board composition rules, and charities with corporate arms. Most non-executive roles are paid through some mix of:
- An annual fee for serving on the board, often paid quarterly or yearly.
- Sitting allowances for each board or committee meeting attended.
- Committee fees for chairing or sitting on audit, risk or remuneration committees.
- Reimbursed expenses such as flights and hotels to attend meetings in Nigeria.
The level is a matter for the company and its shareholders, and you should see it set out in a board or shareholder resolution or your letter of appointment before you rely on it. There is no published national scale for private companies.
The withholding tax rate on directors' fees
Directors' fees have their own line in the 2024 Withholding Regulations. PwC's highlights of the Regulations, in force from 1 July 2024, list directors' fees paid to individuals at 15% for residents and 20% for non-residents. BusinessDay's summary of the reforms (11 July 2024) gives the same 15% and 20% figures. That is higher than the 5% or 10% rate on professional fees, so how a payment is described matters: a sitting allowance labelled as a director's fee will be taxed as one.
| Payment | Rate if resident | Rate if non-resident |
|---|---|---|
| Directors' fees (individuals) | 15% | 20% |
| Professional or consultancy fees (individuals), for separate advisory work | 5% | 10% |
Rates as stated in the 2024 Regulations per PwC; check with the company's tax adviser whether any later change under the Nigeria Tax Act 2025 applies to the payment date, as we did not find new withholding regulations under that Act in October 2026. Whether you are resident depends on Nigerian residence rules, not nationality. This is information, not tax advice.
Worked example
Example only. A London-based director is paid an annual fee of ₦6,000,000 and sitting allowances of ₦250,000 for each of four board meetings, all treated as directors' fees. The total is ₦6,000,000 + (4 × ₦250,000) = ₦7,000,000. At the non-resident rate of 20%, the company deducts ₦1,400,000 and pays ₦5,600,000. Flights and hotels reimbursed on receipts, invoiced separately, are not part of that ₦7,000,000.
Who collects the tax and what you should receive
Under section 3 of the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (NRS) administers taxes on non-residents, while State Internal Revenue Services handle resident individuals. The company deducts and remits; your part is to make sure the deduction is recorded properly. Ask for:
- A WHT receipt for every payment, showing your name, Tax ID, the gross fee, the amount deducted and the period.
- A payment advice splitting fees, sitting allowances and expense reimbursements.
- A copy of the resolution or appointment letter that sets your fees.
- An annual summary, which you will need for your tax return at home and any foreign tax credit claim.
Our guides on getting a WHT credit note and on providing your Tax ID explain both steps. Most countries tax their residents on worldwide income, including foreign directors' fees, and give credit for foreign tax under local rules or a treaty; see where you pay tax.
Expenses and benefits
Flights and hotels the company reimburses against receipts are best invoiced separately from fees, with the receipts attached, so they are not treated as part of the fee. A Danol Partners overview of the 2024 Regulations lists out-of-pocket expenses billed separately from fees among the WHT exemptions. Benefits such as a car or housing during visits are a different matter and may be taxable; ask the company how it treats them.
Getting paid in practice
Nigerian companies pay directors' fees in naira to a Nigerian account. Some will pay into a domiciliary account if the director asks, but that depends on the company and its bank. If you are also advising the company separately, put that work under a separate consultancy agreement so it is not lumped in with directors' fees at the higher rate.
Where Pryme fits
A Pryme account opened from abroad gives you naira account details for the company to pay your fees, and holds pounds, dollars and euros alongside. The fees stay in naira until you choose to Swap, seeing the rate and the fee before you approve. A verifiable statement through VerifyDoc.ai (receipts) helps when your tax adviser at home asks for proof of what was received.
Questions people ask
What is the withholding tax rate on directors' fees in Nigeria?
Under the 2024 Withholding Regulations, as summarised by PwC and BusinessDay, it is 15% for resident individuals and 20% for non-resident individuals.
Are sitting allowances taxed as directors' fees?
If the company classifies them as directors' fees, yes, at the same rate. Ask for a payment advice that shows how each item is classed.
Can a Nigerian company pay my directors' fees abroad?
Most pay naira into a Nigerian account. Payment in foreign currency depends on the company and its bank, so agree it in writing at appointment.
Do I pay tax at home on Nigerian directors' fees?
Usually, if your country taxes residents on worldwide income, with credit for Nigerian tax under its rules or a treaty. Keep every WHT receipt.
Sources
- PwC Nigeria: Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · accessed Oct 2026
- BusinessDay: Nigeria's withholding tax reforms, key changes and implications (11 Jul 2024) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette) · accessed Oct 2026
- Mondaq (Danol Partners): Overview of the Deduction of Tax at Source (Withholding) Regulations 2024 (16 Oct 2024) · 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.