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
Logistics firms cut cash-on-delivery risk by moving customers to pay by transfer at the door, giving every parcel a reference that ties the payment to the order, and remitting rider collections daily rather than weekly. The less physical cash a rider carries, the fewer losses, disputes and robberies you deal with.
Why cash on delivery is still common
Many Nigerian online shoppers will not pay upfront for goods they have not seen. Cash on delivery (COD) solves that trust gap for the buyer but moves the risk onto the delivery company and the seller. Your rider collects money on behalf of a merchant, carries it around the city, and has to hand it over later. Every step is a chance for loss, error or dispute.
The typical problems are familiar to anyone who has run a dispatch business:
- Riders holding collections for days before remitting.
- Short remittances explained as change given or a customer who paid less.
- Robbery risk for riders known to carry cash.
- Merchants waiting a week or more for their money and losing trust in you.
- Failed deliveries because the customer does not have cash at the door.
Move from cash on delivery to pay on delivery
The buyer's real need is to see the item before paying, not to pay in notes. Most of your COD volume can become transfer on delivery: the rider arrives, the customer inspects the item, then pays by transfer to an account tied to that order. The rider waits for confirmation and hands over the parcel.
This is easier now because cash is harder to get. From January 2026 the CBN capped weekly cash withdrawals at ₦500,000 for individuals and ₦5 million for corporates, with a 3% or 5% charge on amounts above the cap. Many customers simply do not keep enough cash at home for a large order.
Give each order its own payment reference
The most common reason a transfer cannot be matched is that the customer pays to a general account with no reference. A virtual account per merchant, or per order, means every payment lands already labelled. Your team then reconciles by matching, not guessing.
Tighten rider remittance where cash remains
Some customers will still pay in cash. For those, set rules and keep them:
- Remit the same day. Collections are paid in by transfer at the end of each shift, not at the end of the week.
- One manifest per rider per day, listing each COD amount. The rider's remittance must equal the manifest total less any approved failed drops.
- A cap on cash held. Above a set amount, the rider pays in before taking more parcels.
- Photo or signature proof for every delivery, so disputes can be checked.
- Clear consequences for short remittances, written into the rider's agreement.
Pay merchants faster and earn their loyalty
Merchants choose a logistics partner largely on how fast and how accurately they get their COD money. A firm that reconciles daily can pay out daily. Publish a payout schedule, send each merchant a statement listing every order and amount, and settle disputes with the delivery proof you already collect. For the matching side of this, see payment reconciliation in Nigeria.
The FCCPC also expects services to be delivered on time, with timely notice when a delay cannot be avoided. Clear tracking messages to the buyer protect the merchant, and you, from complaints.
Keep records that stand up at tax time
COD money you collect belongs to the merchant, not to you. Your income is the delivery fee. Keeping merchant collections and your own fees clearly separated in your books matters, because tax is assessed on your revenue, not on the gross cash passing through riders' hands.
Under the tax reform Acts in force from January 2026, a small company, one with annual turnover of ₦100 million or less and fixed assets below ₦250 million, pays 0% company income tax, but must still file and keep records. The VAT registration threshold is now ₦50 million in annual turnover, and the VAT rate remains 7.5%. A logistics firm that books gross COD collections as its own revenue may wrongly appear to cross these lines.
- Merchant collections
- Money held for the seller, paid out after delivery
- Delivery fees
- Your revenue, subject to tax rules
- Rider float
- Cash in transit, cleared each day
Reduce failed drops
A failed delivery costs you the trip twice. Confirm the order by phone or message before dispatch, share the exact amount and payment options, and send the rider's arrival window. Customers who know they can pay by transfer, or with a pay-later option, are less likely to turn the rider away because they are short of cash.
Where Pryme fits
Logistics sits under Transport, one of the sectors supported on Spaces. A delivery firm with a Pryme Business Account can use virtual accounts to tag payments by merchant or order, pay merchants with bulk payouts, and join Spaces to reach customers holding Loans on Spaces, which are lent by Solid Allianze MFB and can only be spent with Spaces merchants. Customers accept the full agreement before anything is drawn. Ask Pryme about merchant terms through contact.
Questions people ask
How do I stop dispatch riders from keeping COD money?
Require same-day remittance by transfer against a daily manifest, cap the cash a rider can hold, and keep delivery proof for every drop. Shortfalls are then visible the next day.
Can customers pay by transfer on delivery instead of cash?
Yes. The customer inspects the item, pays by transfer to an account linked to the order, and the rider releases the parcel once payment is confirmed.
How often should a logistics company pay merchants their COD money?
As often as you can reconcile accurately. Daily or every two days builds merchant trust; weekly payouts leave large sums in limbo.
What is the CBN cash withdrawal limit in 2026?
From January 2026, ₦500,000 a week for individuals and ₦5 million for corporates, with charges of 3% and 5% on the excess.
Sources
- CBN weekly cash withdrawal limits from January 2026 (BusinessDay) · accessed Oct 2026
- FCCPC: Consumer rights and responsibilities · accessed Oct 2026
- Nigerian tax reform Acts 2026 explained for small businesses (Techpoint Africa) · 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.