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 can choose its accounting year-end; 31 December is common, but matching the year-end of your company or group abroad makes consolidation far simpler. The date drives the deadlines: PwC's Nigeria tax summary says company income tax returns are due six months after the year-end (or 18 months after incorporation for a new company), and audited accounts go to the CAC with the annual return after the AGM.
Founders setting up a Nigerian company from abroad often accept whatever year-end the incorporation agent fills in. That choice decides when the accountants are busiest, when tax is due, how hard it is to combine the Nigerian figures with your foreign company's, and whether year-end lands in the middle of your peak trading season. It is worth ten minutes before the first accounts are prepared.
What the year-end controls
| Obligation | Rule | Source |
|---|---|---|
| Company income tax return | Due six months after the year-end; for a new company, 18 months after incorporation | PwC Nigeria corporate tax administration |
| Annual general meeting | Each year, no more than 15 months apart, first within 18 months of incorporation; small and single-shareholder companies exempt | CAMA 2020 s.237 (LawGlobalHub) |
| CAC annual return with audited accounts | Within 42 days after the AGM | PwC CAMA compliance summary |
| Changing the year-end later | Notify the CAC of the change of accounting reference period (s.377(4)) | PwC CAMA compliance summary |
| Employer annual return | By 31 January for the previous calendar year, whatever your year-end | NTAA 2025 s.14(1) |
Note the last row. Payroll returns and personal income tax run on the calendar year (PwC says the individual tax year is 1 January to 31 December), so a non-December company year-end means payroll and company figures are reconciled across different periods. That is manageable but should be planned.
Matching your foreign accounts
If the Nigerian company is a subsidiary, a branch-like operation, or simply owned by you alongside a company abroad, the strongest reason to pick a year-end is to match the parent's. Group accounts are far easier when both entities close on the same day: one set of exchange rates, one stock count date, one cut-off for intercompany invoices. Where the dates differ, the group accountant must either prepare extra management accounts for the Nigerian company to the parent's date or adjust for transactions in the gap.
Common foreign year-ends among diaspora founders are 31 March (often chosen to sit near the UK tax year), 30 June, and 31 December. Check your own company's accounting reference date in the country where it is registered before choosing. See consolidating Nigerian subsidiary accounts abroad for the mechanics.
Worked example: the deadlines each date sets
| Year-end | Company tax return due | Latest busy months for auditors |
|---|---|---|
| 31 December 2026 | 30 June 2027 | January to June, alongside most Nigerian companies |
| 31 March 2027 | 30 September 2027 | April to September |
| 30 June 2027 | 31 December 2027 | July to December, close to the December holidays |
Many Nigerian companies close on 31 December, so audit firms tend to be busiest in the first half of the year. Ask your auditor whether a different date would get your audit done sooner; that is a commercial point, not a rule.
Other factors
- Trading season. Avoid a year-end in your busiest month; stock counts and cut-off are hardest then. A retailer with a December peak may prefer a different date.
- First period length. The first accounting period can be shorter or longer than 12 months; the first tax return deadline is tied to incorporation, so plan the first close early.
- Exchange rates. If you hold foreign-currency balances, the closing rate on the year-end date affects reported results; see revaluing naira balances at month-end.
- Small company relief. Small companies may be exempt from audit and from holding an AGM; check whether yours qualifies before planning an audit timetable around one.
Write the decision down. The board should record the chosen accounting reference date in a resolution, the external accountant should confirm the first period's dates and deadlines in writing, and every deadline should go into the company's compliance calendar straight away. Owners abroad who leave this to the incorporation agent often find out about the first tax return only when a penalty notice arrives.
Changing the year-end later
You can change the accounting reference date, but CAMA requires the change to be notified to the CAC, and the tax authority will need to agree how the transition period is assessed. Changing often looks like moving profits between periods, so pick carefully once. If you are about to change, do it before the next period starts, write a board resolution recording the reason (for example, aligning with a new parent company), and tell your bank and auditor so their confirmations cover the right dates. For the filings themselves, see company tax filings for owners abroad and the Nigeria library's guide to CAC annual returns.
Where Pryme fits
A Pryme Business Account keeps NGN, USD, GBP and EUR balances side by side, and statements for any period can be issued as verifiable documents for your auditors at year-end.
Questions people ask
Must a Nigerian company use 31 December as its year-end?
No. 31 December is common, but a company can choose its accounting reference date and notify any later change to the CAC.
When is company income tax due in Nigeria?
PwC's summary says returns are due six months after the year-end, or 18 months after incorporation for a new company, as at May 2026.
Should my Nigerian company have the same year-end as my UK company?
Matching the parent's year-end usually makes group accounts and audits simpler. It is not required.
Can I change my company's financial year-end?
Yes, but CAMA section 377(4) requires the change to be notified to the CAC, and the tax transition needs planning with your accountant.
Sources
- PwC Worldwide Tax Summaries: Nigeria corporate tax administration (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria individual tax administration (reviewed 29 May 2026) · accessed Oct 2026
- LawGlobalHub: section 237 CAMA 2020 (annual general meeting) · accessed Oct 2026
- PwC Nigeria: Key compliance obligations under CAMA 2020 and CR 2021 · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette text) · 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.