AI agents for business finance: what they can and can't do
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The short answer
To consult for a Nigerian federal agency from the UK, expect three things: registration requirements under Nigeria's Public Procurement Act regime (federal contractors and consultants are expected to be on the Bureau of Public Procurement's national database), tax deducted at the point of payment (PwC gives 10% withholding tax on consultancy fees paid to non-residents), and the UK Bribery Act, which applies to UK residents and British citizens for conduct anywhere and allows no exemption for facilitation payments.
Nigerian ministries, departments and agencies (MDAs) hire diaspora experts for strategy, technology, health, education and finance work. The engagement can be rewarding, but government work has its own rules on both sides. This guide covers how you are likely to be engaged, how and when you are paid, and the UK law that follows you to Abuja.
How the engagement usually happens
A government agency may hire you directly as an individual consultant, through a Nigerian firm that holds the main contract, or through a donor-funded programme with its own procurement rules. Each route changes who your client is, who pays you and which rules apply. Ask at the start which of these it is, and get the answer in writing.
| Route | Your client | What to clarify |
|---|---|---|
| Direct engagement by an MDA | The agency | Procurement registration, payment process, tax deductions |
| Sub-consultant to a Nigerian firm | The firm | Your contract with the firm, when it pays you, WHT |
| Donor-funded programme | Programme manager or firm | The donor's procurement and anti-corruption terms |
Procurement registration
Federal procurement sits under the Public Procurement Act 2007. A December 2014 circular from the Office of the Secretary to the Government of the Federation says federal contractors, consultants and service providers must be on the National Database of Federal Contractors, Consultants and Service Providers kept by the Bureau of Public Procurement (BPP), that bidders submit an Interim Registration Report, and that unregistered providers cannot do business with the Federal Government. The circular is old, and current documents and portal steps should be confirmed with the BPP and the agency's procurement unit before you bid.
Nigeria's tax rules now reach foreign suppliers too. EY reported in February 2026 that the Nigeria Tax Administration Act requires non-resident companies to register for a Tax ID from 1 January 2026, even without a permanent establishment, and that a Nigerian company awarding a contract to an unregistered person faces a ₦5 million penalty. If you consult through your own UK company, raise registration with the client early. Our guide to a Nigerian client asking for your TIN covers the practical side.
How you get paid, and what is deducted
Federal payments run through government systems that build tax in. Techeconomy reported in March 2025 that the Office of the Accountant-General moved MDA payments from Remita to TMRAS (Treasury Management and Revenue Assurance System), and that the system does not permit a payment without its tax components, such as VAT, withholding tax and stamp duty. In practice, the amount that reaches you is the invoice less those deductions.
- Withholding tax: PwC's Nigeria summary (reviewed May 2026) gives 10% on consultancy, technical, management and professional fees paid to non-residents, as a final tax for non-resident companies.
- Treaty position: under the UK-Nigeria double taxation convention, a UK resident's independent professional services are taxable only in the UK unless they have a fixed base regularly available in Nigeria (Article 14). Government systems may still deduct at source, so ask how treaty relief is handled before you price.
- Currency: agree whether you are paid in naira or a foreign currency, and how the exchange rate is set if the contract is priced in one and paid in the other.
Price the work so the net amount covers your costs. Our pricing worked example shows how to gross up a fee for a 10% deduction, and Nigerian withholding tax for non-residents on our Nigeria site covers the deduction in more depth.
The UK Bribery Act goes with you
This is the part UK-based consultants most need to understand. The Bribery Act 2010 makes it an offence to bribe a foreign public official to win or keep business or an advantage, whether directly or through a third party (section 6). Section 12 extends the offences to acts done entirely outside the UK by anyone with a close connection to the UK, which includes British citizens and individuals ordinarily resident in the UK. The maximum sentence on indictment is 10 years' imprisonment, a fine, or both (section 11).
The Ministry of Justice quick start guide says facilitation payments, meaning small payments to get officials to do routine things, are bribes, and there is no exemption for them. It also says you can pay legally required administrative fees and official fast-track services, and that reasonable, proportionate hospitality is not prohibited. Our guide to the UK Bribery Act and consulting in Nigeria works through common requests.
Steps before you sign
- Confirm who your contracting party is: the agency, a Nigerian firm or a programme.
- Ask what registration is needed (BPP database, Tax ID) and who handles it.
- Get the deductions in writing: WHT, VAT, stamp duty, and any treaty relief process.
- Agree currency, invoicing format and payment timetable.
- Put an anti-bribery clause in your contract and keep a record of every official fee paid, with receipts.
- Report the fee as income on your UK tax return and keep WHT receipts for a credit claim.
Where Pryme fits
A Pryme Business Account can receive naira from a Nigerian payer and hold it until you choose to convert, with the rate and fee shown first. The Compliance agent can keep contracts, official-fee receipts and WHT documents in one record, and actions are logged with your approval.
Questions people ask
Do I need to register with the BPP to consult for a federal ministry?
A 2014 OSGF circular says federal contractors and consultants must be on the BPP's national database and that unregistered providers cannot do business with the Federal Government. Confirm current requirements with the BPP and the agency.
How much tax will a Nigerian ministry deduct from my fee?
PwC's summary gives 10% WHT on consultancy and professional fees paid to non-residents. VAT and stamp duty may also be handled at payment. Ask the agency for its deduction schedule.
Does the UK Bribery Act apply if everything happens in Abuja?
Yes, if you are a British citizen or ordinarily resident in the UK. Section 12 covers acts done wholly outside the UK by people with a close connection to it.
Can I pay an official to speed up my paperwork?
Only an official, legally required fee or fast-track service, with a receipt. The MoJ guide says informal facilitation payments are bribes.
Sources
- OSGF circular SGF/50/S.52/II: national database of federal contractors (Dec 2014) · accessed Oct 2026
- EY Global Tax News: Nigeria tax registration for non-resident companies (17 Feb 2026) · accessed Oct 2026
- Techeconomy: FG introduces TMRAS to replace Remita (4 Mar 2025) · accessed Oct 2026
- PwC Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- legislation.gov.uk: Bribery Act 2010, section 12 (offences abroad) · accessed Oct 2026
- Ministry of Justice: Bribery Act 2010 quick start guide · 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.