AI agents for business finance: what they can and can't do
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The short answer
An employer in Nigeria can dismiss an employee for theft or fraud, but the safest route is a fair process: secure the evidence, issue a written query setting out the allegation, give the employee time to respond, hold a hearing where they can answer, then decide and record the reasons in writing. Report the crime to the police separately; do not detain the employee, and do not simply deduct the missing money from wages beyond what the Labour Act allows.
Why process matters even when you are sure
Theft and fraud are among the clearest grounds for ending employment, and contracts and handbooks commonly list them as gross misconduct for which dismissal can be immediate. The difficulty is rarely the ground; it is proof and procedure. An employee dismissed in a hurry, without being told what they are accused of or given a chance to answer, may go to the National Industrial Court claiming wrongful dismissal, and the employer then has to prove what it did and why. A short, documented process protects a business that is right, and catches the occasional case where the first suspicion was wrong.
Step 1: secure the evidence
- Preserve CCTV footage, till records, stock counts, bank statements, emails and chats before anyone can delete them.
- Write down who discovered what, when, and what they saw, signed and dated.
- Restrict the employee's access to cash, systems or stock while you investigate. A paid suspension, if the contract or handbook allows it, is often the cleanest way.
Much of this evidence is electronic. Under section 84 of the Evidence Act 2011, computer-generated evidence must meet conditions about how it was produced; the Supreme Court in Sylva v Dickson accepted that these can be shown by certificate or by oral evidence, according to a 2025 Mondaq review. Keep a note of which device or system produced each record and who can speak to it.
Step 2: issue a written query
A query is a letter stating the allegation clearly enough for the employee to answer it: the date, the amount or items, and the evidence relied on. Give a reasonable deadline to respond in writing, longer for a complex fraud than for a single missing sum, and check your handbook for any period it sets. Keep a copy signed as received.
Step 3: hold a hearing
Even in a small business, let the employee answer in person. Have someone other than the accuser chair it where you can, let the employee see the main evidence, and take notes that both sides sign. If the employee raises a credible explanation, check it before deciding.
Step 4: decide and record
Put the decision in a letter: the finding, the reason, the effective date, and what will happen to final pay. If the decision is to dismiss for gross misconduct, say so. If the contract allows termination on notice instead, the Labour Act's minimum notice (section 11) ranges from one day to one month depending on length of service.
Fraud by senior staff
Where the suspected fraud involves a manager, finance officer or director, bring in someone independent to investigate, such as an external accountant, before the query is issued. Senior staff often have access to the very records you need, so secure those systems first. Fraud cases also tend to involve more documents, so allow the employee more time to respond, and let them see the key figures behind the allegation.
Involving the police
Theft and fraud are crimes, and reporting them to the police is the employer's right. Keep the two tracks apart: the internal process decides employment; the police and courts decide guilt. Do not hold an employee on the premises, seize their phone or property, or hand them to anyone other than the police. Give the police copies of your evidence, keep the originals, and do not make the dismissal depend on a conviction that may take years.
A worked example
Example only. A Lagos supermarket's stock count shows ₦430,000 of phone credit vouchers missing over two weeks, and till logs link the voids to one cashier's login. The manager secures the CCTV export and till report, suspends the cashier on full pay and issues a query on Monday asking for a response by Wednesday. The cashier says a colleague used her login. At the hearing on Friday, the footage shows the cashier herself at the till at each void time. The supermarket dismisses her by letter the following Monday, pays her wages up to that date, and files a report at the police station with copies of the footage and logs.
This is general information, not legal advice. See also if staff sue at the National Industrial Court, which salary deductions are legal and, where documents were faked, whether forging a receipt is a crime.
Where Pryme fits
Fraud often hides in payments. On a Pryme Business Account, the Finance agent prepares payments and reconciliations, a person approves above a set ceiling, and actions are recorded, which helps both prevention and investigation. Sign-in uses an authenticator app rather than SMS codes, plus a transaction PIN. See the Finance agent and security.
Questions people ask
Can I sack an employee for stealing in Nigeria?
Yes, theft is generally treated as gross misconduct. Follow a fair process: evidence, written query, hearing and a written decision.
Can my employer deduct money from my salary for a loss?
The Labour Act bars deductions not permitted by law and caps total monthly deductions at one third of that month's wages. Take advice before recovering a loss through pay.
Do I need to report employee theft to the police before dismissing?
No. The employment decision and the criminal complaint are separate. You can report to the police and run your own process in parallel.
What is a query letter in Nigeria?
A written letter setting out an allegation against an employee and asking for a written response by a deadline, before any disciplinary decision.
Sources
- Labour Act, Cap L1 LFN 2004 (PLAC text) · accessed Oct 2026
- Mondaq (Compos Mentis): Admissibility of electronic evidence in Nigeria (27 May 2025) · 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.