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
Federal ministries, departments and agencies pay vendors through the Treasury Management and Revenue Assurance System (TMRAS), which the Accountant-General's circular says will not release a payment without its tax components (VAT, withholding tax and stamp duty) and which requires vendors to be registered with the tax authority. A non-resident consultant should expect 10% withholding tax on consultancy fees, BPP registration as a federal contractor or consultant, and payment only against a signed contract and approved invoice.
Public-sector work in Nigeria can be well paid and professionally rewarding, but the payment path is different from a private client's. Money leaves through the Treasury, taxes are taken by the system before release, and every step needs paperwork that matches. If you are abroad, you cannot fix a mismatch by walking into the agency, so set things up correctly from the start.
Step one: get on the federal register
A 2014 circular from the Office of the Secretary to the Government of the Federation, issued under the Public Procurement Act 2007, requires anyone doing business with the Federal Government to be on the National Database of Federal Contractors, Consultants and Service Providers kept by the Bureau of Public Procurement (BPP). Bidders submit the Interim Registration Report generated by that database, and the circular says unregistered firms cannot do business with the Federal Government. State governments run their own procurement laws and registers, so a state agency may ask for a different registration.
The circular does not list every document BPP asks for, and the portal's current list can change, so read the BPP portal's own guidance before you start. Expect to need a Nigerian Tax ID, because TMRAS needs vendors registered with the tax authority.
How the money actually moves
In March 2025 the Office of the Accountant-General of the Federation moved MDA payments from Remita to TMRAS. As reported from its circular:
- TMRAS went live on 4 March 2025, ran in parallel with Remita until 4 May 2025, and then became the route for all MDA payments.
- It automates tax deductions on vendor payments; the circular states that "the system shall not permit any payment without the associated tax components", naming VAT, withholding tax and stamp duty.
- Vendors must be registered with the tax authority (FIRS then, now the Nigeria Revenue Service).
In practice this means your invoice amount and the amount that lands are never the same, and the deductions are made whether or not you expected them.
The taxes taken before payment
Withholding tax
Under the Deduction of Tax at Source (Withholding) Regulations 2024, consultancy, professional, technical and management fees carry 5% for residents and 10% for non-residents, according to PwC's summaries; government ministries and agencies are among the bodies that must deduct. For non-resident companies PwC describes this deduction as the final tax. The regulations also double the rate where the vendor has no valid tax number. Ask for the withholding tax receipt for every payment; see getting your WHT credit note.
VAT
Under the Nigeria Tax Act 2025, services consumed in Nigeria are taxable whether performed inside or outside the country, and a non-resident supplier is expected to register and show VAT on its invoice, with the Nigerian customer able to withhold and remit it, as Mondaq's review of the Act explains. The standard rate is 7.5%, per PwC. Agree in the contract whether your fee is quoted inclusive or exclusive of VAT.
Stamp duty
TMRAS also takes stamp duty where it applies. Ask the agency's finance unit how it is computed on your contract before you sign.
A worked example
Example only: a non-resident consultant has a US$20,000 contract, quoted exclusive of VAT, and the agency withholds VAT.
| Line | Amount (example) |
|---|---|
| Fee invoiced | US$20,000 |
| VAT at 7.5%, withheld and remitted by agency | US$1,500 |
| WHT at 10% on the fee | US$2,000 |
| Paid to consultant (before any stamp duty and bank charges) | US$18,000 |
If you had no valid tax number the withholding could double to US$4,000, leaving US$16,000. Check how the agency will settle: many federal contracts are priced and paid in naira, so ask which currency the contract states and which account the payment goes to.
Timelines and what to put in the contract
We found no published federal rule fixing how many days an agency has to pay a consultant. Payment depends on the contract, certification of your deliverable, and funds being released to the agency. Protect yourself in the contract:
- Milestones with a named officer who certifies each deliverable.
- The contract currency, and whether the fee is gross or net of VAT and WHT.
- The bank account the payment goes to, in the same name as the contract.
- A mobilisation or advance payment, if the procurement terms allow it.
- Who pays travel when you are required in Abuja or a state capital.
Keep every TMRAS payment advice and withholding tax receipt. Your home tax authority may ask for proof of Nigerian tax deducted before it allows any relief, and the receipt is also what you need if the agency's figures differ from yours.
Where Pryme fits
If the agency pays in naira, a Pryme Business Account opened from abroad gives you naira account details alongside dollars, pounds and euros, and Swap converts only when you choose, with the rate and fee shown before you approve. The Finance agent can match each payment to its WHT receipt for you to review.
Questions people ask
How do federal agencies pay consultants now?
Through TMRAS, which replaced Remita for MDA payments from May 2025 and deducts VAT, WHT and stamp duty automatically before release.
How much WHT will a government agency deduct from my consulting fee?
Under the 2024 regulations, 10% for non-residents and 5% for residents on consultancy and professional fees, doubled if you have no valid tax number. Confirm current rates.
Do I need BPP registration as a foreign consultant?
A 2014 SGF circular requires anyone doing business with the Federal Government to be on the BPP contractors and consultants database. Check BPP's portal for foreign-applicant requirements.
Can a Nigerian agency pay me in dollars?
It depends on the contract. Many are in naira. Agree the currency and receiving account before signing.
Sources
- OSGF circular on the national database of federal contractors, consultants and service providers (Dec 2014) · accessed Oct 2026
- Techeconomy: FG introduces TMRAS to replace Remita for MDA payments (4 Mar 2025) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · accessed Oct 2026
- Mondaq: Examination of the VAT provisions under the Nigeria Tax Act 2025 (28 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, other taxes (reviewed 29 May 2026) · 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.