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
Buy and register company vehicles and equipment in the company's exact CAC name, pay for them from the company account, and keep the invoices, registration papers and an asset register that shows each item's cost, location and custodian. Ownership in the company's name protects the asset if a manager leaves, and Nigeria's capital allowance rules give relief only on assets the company owns and can evidence.
Why assets drift out of the company's name
An owner abroad sends money to a manager or relative, who buys a car, generator or set of laptops "for the business" and registers it in their own name because it is quicker. Years later the manager leaves, the relationship sours, and the company cannot prove it owns anything. A vehicle registered to an individual is legally theirs on paper. The fix is boring and works: the company buys, the company pays, the company is named on every document.
Getting the name right at purchase
- Invoice and receipt addressed to the company by its exact CAC name and RC number, not to the manager.
- Payment from the company's own account. A transfer from a director's personal account muddles whether it was a loan to the company or a personal purchase.
- Vehicles registered with the state motor licensing authority in the company's name. In the FCT, the Directorate of Road Transport Services has run a self-service registration portal since March 2023 (Gazette, May 2024); other states use their own agencies, so ask what company documents they need (often the certificate of incorporation and a letter of authority).
- Import papers for imported equipment kept with the asset file.
- Insurance in the company's name, with the company as the insured party.
What an asset register should hold
| Field | Example entry |
|---|---|
| Asset ID and description | VEH-002, Toyota Hilux, white |
| Serial, chassis or plate number | Chassis and plate as on the registration papers |
| Date bought and supplier | 12 Mar 2026, supplier name |
| Cost and how paid | Amount, company account reference |
| Custodian and location | Operations manager, Ikeja depot |
| Documents held | Invoice, registration, insurance, receipt |
| Condition check and date | Photos uploaded monthly |
| Disposal | Date, buyer, proceeds, approval |
Ask the custodian to sign for each asset and to send dated photos on a fixed day each month. That one habit catches most problems early. Our guide to preventing staff fraud in a business run from abroad covers the wider controls.
Disposals and replacements
Selling or scrapping an asset needs the same discipline as buying it. Set a rule that disposals above a set amount need a director's written approval, that the buyer pays the company's account (never cash to the manager), and that the register records the date, buyer and price. PwC notes that under the new rules disposal proceeds above the tax written-down value are taxed, so the sale price also matters for the tax return. When a laptop or phone is replaced, wipe and log the old device before it leaves the office; company data on a discarded phone is an asset too.
Why the tax rules care
Under the Nigeria Tax Act 2025, as summarised by PwC (reviewed May 2026), capital allowances are given straight-line: 10% a year for buildings and heavy transport (Class 1), 20% for plant, agricultural equipment and furniture (Class 2), and 25% for motor vehicles, software and other capital spending (Class 3). The initial allowance has gone, 1% of cost stays in the books until disposal, and PwC notes an asset must have had VAT charged or import duty paid to qualify. Without invoices in the company's name, a claim is hard to defend.
Fixed assets also matter for thresholds. PwC describes a company as large for company income tax if turnover exceeds ₦100 million or fixed assets exceed ₦250 million, and the Tax Administration Act's "small business" test for VAT returns uses fixed assets below ₦250 million. An accurate register tells you which side of the line you are on.
A worked example
Example only. A company buys a delivery van for ₦30,000,000 with VAT charged and the invoice in its name. As a Class 3 motor vehicle at 25% a year, the allowance is ₦7,500,000 a year. Because 1% of cost (₦300,000) is kept in the books until disposal, the four allowances total ₦29,700,000: ₦7,500,000 in each of the first three years and ₦7,200,000 in the fourth. Check the exact rules with your accountant.
Records an owner abroad should be able to open
The Tax Administration Act lets the tax authority ask for records held on computers, devices or cloud services (section 57) and to raise additional assessments within six years (section 36). Keep scanned invoices, registration papers and the register itself in a shared folder the directors control, not on a manager's phone, and keep them for at least six years. The annual accounts should agree with the register; see annual accounts for a company owned from abroad and, for the accounting treatment, depreciation for equipment and vehicles.
Where Pryme fits
Paying suppliers from a Pryme Business Account keeps the payment in the company's name, and a verifiable receipt or statement from VerifyDoc.ai can be checked by anyone as genuine and unaltered. The Finance agent can match asset purchases to invoices and flag any without one, for a person to approve.
Questions people ask
Can a Nigerian company register a car in its own name?
Yes. The state motor licensing authority registers vehicles to companies; it will usually ask for the certificate of incorporation and an authority letter. Check your state's list.
What capital allowance applies to a company vehicle in Nigeria?
Under the Nigeria Tax Act 2025, as summarised by PwC, motor vehicles are Class 3 at 25% a year straight-line, with 1% of cost retained until disposal.
How long should a Nigerian company keep asset records?
At least six years: the tax authority can raise additional assessments within six years under the Tax Administration Act 2025, and longer where there is deliberate misstatement.
What if the manager registered the company car in his name?
Get a written transfer to the company now, while relations are good, and re-register it. Keep the original payment proof to show the company paid.
Sources
- PwC Worldwide Tax Summaries: Nigeria corporate deductions (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria taxes on corporate income (reviewed 29 May 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Gazette: automation of vehicle registration, FCT DRTS (26 May 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.