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
To pay a Nigerian supplier, either wire USD, GBP or EUR to their domiciliary account at a Nigerian bank, or use a provider that converts your money and pays naira into their local account within minutes. To get paid by a Nigerian client, send a bank-ready invoice in your currency, expect Nigerian withholding tax (usually 10% on professional fees) to be deducted, and allow time for their bank to source FX on the official market. Nigeria unified its FX windows in 2023 and left the FATF grey list in October 2025, so the process is more predictable than it was.
Nigeria's foreign exchange market today
Every payment between a foreign firm and a Nigerian counterparty passes through the naira at some point, so the state of the foreign exchange (FX) market sets the terms for everything else. That market changed more between 2023 and 2025 than in the previous decade.
On 14 June 2023 the Central Bank of Nigeria (CBN) ended the system of multiple FX windows and moved to a "willing buyer, willing seller" model. All official segments were folded into a single market, now called the Nigerian Foreign Exchange Market (NFEM). The old Investors' and Exporters' window was renamed in October 2023. In December 2024 the CBN added an Electronic Foreign Exchange Matching System (EFEMS): FX trades by authorised dealers must be priced through it, every trade must be reported to the CBN within minutes, and unlicensed intermediaries may not deal in FX.
The adjustment was sharp. The official rate was about ₦469.50 to the dollar on 8 June 2023 and about ₦1,538 by February 2024. The parallel (street) market touched ₦1,700 in October 2024. Since then the naira has stabilised. On 2 October 2026 the NFEM rate was about ₦1,328 per dollar, with the parallel market around ₦1,375–₦1,390, and external reserves had passed $55 billion in September 2026. The gap between official and street rates, once several hundred naira, is now a few per cent.
What this means for a foreign firm
- Price in your currency, settle where you can. Quoting in USD, GBP or EUR protects you from naira moves, but your Nigerian client must buy that currency through a bank on the NFEM, with documents. Factor that lead time into payment terms.
- Domestic deals are in naira. The CBN's Foreign Exchange Manual (fourth edition, in force from 1 June 2026) says transactions between Nigerian entities should generally be priced and settled in naira, with exemptions for sectors such as oil and gas, aviation, maritime and free trade zones. If you have a Nigerian subsidiary, its local contracts will usually be in naira.
- Use the official rate as your reference. Banks and licensed operators price off the NFEM. A counterparty who insists on a street rate is asking you to step outside the regulated system.
How cross-border payments into and out of Nigeria work
Nigeria runs a documented FX system. Foreign currency moves through authorised dealer banks, and each outward payment is tied to a reason the CBN recognises. Knowing the forms your counterparty must file explains most delays.
- Domiciliary account
- A foreign currency account (USD, GBP or EUR) held at a Nigerian bank. Individuals and companies can hold them. Export proceeds must be credited to an export domiciliary account.
- Form M
- The import declaration for physical goods. A Nigerian importer files it through their bank before buying FX to pay a foreign supplier.
- Form A
- The application for FX to pay for "invisibles": services, consulting, software, royalties, management fees, school fees and travel.
- Form NXP
- The export declaration for goods leaving Nigeria. It tracks that the export proceeds come back.
- Certificate of Capital Importation (CCI)
- Evidence, issued electronically by a Nigerian bank, that foreign capital came into Nigeria through official channels. It is what lets an investor later repatriate dividends and capital at the official market.
What changed in the 2026 FX Manual
The CBN's revised Foreign Exchange Manual, implemented from 1 June 2026, replaced the 2018 edition. The changes that matter most for foreign firms:
- Holders of self-funded domiciliary accounts no longer need Form A for outward transfers, and can send up to $10,000 a day by direct transfer without full trade documents.
- Advance payment for imports rose from 15% to 30% of the free-on-board value of the goods.
- Non-oil export proceeds must reach the exporter's domiciliary account within 90 days of the bill of lading (180 days for oil and gas), or a 1% penalty applies.
- Foreign capital must be registered for an electronic CCI within 24–48 hours of arrival. Missing this can affect the investor's ability to take money back out.
- Banks that process transactions without adequate documents face a ₦100 million fine plus ₦10 million per transaction. Expect your counterparty's bank to ask for more paperwork, not less.
Documents a Nigerian payer is usually asked for
For services, a Nigerian client's bank will typically want your invoice, the signed contract or purchase order, evidence that the service was delivered, and proof that tax obligations (withholding tax and VAT) have been handled. For goods, it will want the Form M, a proforma invoice, shipping documents and, for some items, price verification. Sending a clean invoice with your legal name, address, tax reference, bank details and a clear description of the service shortens this step.
Paying Nigerian contractors and suppliers
If you hire Nigerian developers, designers or agents, or buy from Nigerian suppliers, you have three broad choices: pay in foreign currency to a Nigerian domiciliary account, pay in naira to a local account, or pay through a platform that does one of these for you.
Foreign currency to a domiciliary account
An international wire (usually SWIFT) in USD, GBP or EUR to the payee's domiciliary account. The payee keeps the foreign currency and decides when to convert. Many contractors prefer this because it protects their earnings from naira moves. The costs are your bank's outgoing wire fee, any intermediary bank charges deducted along the way, and the receiving bank's charges. Arrival typically takes one to three working days.
Naira to a local bank account
You send your currency to a provider that converts it and pays naira into any Nigerian bank account over the local instant payment rails, identified by the 10-digit NUBAN account number. This is usually faster and cheaper than a wire, and the payee gets spendable money at once. The trade-off is that the conversion happens at the provider's rate on the day, so check the margin against the NFEM rate.
Note the CBN's rules on personal remittances. Since the January 2024 guidelines for International Money Transfer Operators (IMTOs), money sent to individuals through IMTOs is paid out in naira, and a CBN circular in March 2026 confirmed naira-only payouts through designated naira settlement accounts from 1 May 2026. Payments for services under a contract, sent bank to bank, follow the trade route instead. Ask your provider which route it uses.
Comparing payout routes
| Route | Currency the payee receives | Typical speed | Main costs | Best for |
|---|---|---|---|---|
| International wire to domiciliary account | USD, GBP or EUR | 1–3 working days | Sending fee, intermediary deductions, receiving fee | Large invoices; payees who want to hold foreign currency |
| Local naira payout via a provider | Naira | Minutes to same day | Provider fee plus FX margin | Regular contractor pay; smaller invoices |
| Freelance or payroll platform | Varies by platform | 1–5 days | Platform fee, withdrawal fee, FX margin | One-off gigs; teams already on the platform |
| Card or cash-based remittance | Naira | Minutes | Higher fees; cash limits | Not suitable for business payments |
| Multicurrency account with Nigerian details | Naira or foreign currency, as chosen | Minutes for naira; varies for foreign currency | Conversion fee shown up front | Firms paying and receiving in both directions |
Practical points
- Validate the account name before you send. Nigerian banks return the registered name for a NUBAN, which catches typos and impersonation.
- Agree in the contract which currency you pay in and who bears conversion costs.
- Keep payslips or remittance advice. Your contractor may need them to show income to a lender or the tax authority.
- If you pay many people, use a bulk payment tool that validates names before approval rather than sending one by one.
Getting paid by Nigerian clients
Being paid by a Nigerian business is mostly about removing friction on their side. Their bank has to approve and source the FX, their finance team has to deduct the right tax, and both need your paperwork.
- Agree the currency and who bears costs. If you invoice in USD, say whether bank charges are shared or paid by the sender. If you invoice in naira, agree the reference rate (NFEM on the invoice date is common).
- Make your invoice bank-ready. Legal name, address, tax ID, contract reference, a clear description of the service, the period it covers and full bank details including SWIFT/BIC.
- Expect withholding tax. The client will usually deduct Nigerian withholding tax from your fee and pay it to the Nigeria Revenue Service. Agree in advance whether your fee is net or gross of it, and ask for the tax receipt or credit note so you can claim relief at home.
- Allow time for FX sourcing. Even with a stable market, a client may need days to process Form A and buy FX. Build this into payment terms rather than chasing.
- Offer a naira option where it helps. If you have a Nigerian entity or a local collection account, your client can pay naira instantly and you convert on your side. This removes their FX step entirely.
Invoicing and tax: withholding tax, VAT and treaties
Nigeria rewrote its tax laws in 2025. The Nigeria Tax Act and three related Acts took effect on 1 January 2026, and the federal tax authority is now the Nigeria Revenue Service (NRS). This section is general information, not tax advice. Rules on digital services and permanent establishment in particular are developing, so take local advice for material contracts.
Withholding tax on payments to non-residents
When a Nigerian business pays a foreign company, it is often required to deduct withholding tax (WHT) and remit it to the tax authority. As of May 2026, published rates for non-resident companies were 10% on dividends, interest, royalties, rent, and consulting, technical, management and professional fees, and 5% on other services. KPMG notes that under the new law WHT operates as a final minimum tax for non-residents, can apply even without a permanent establishment in Nigeria, and the rate may double where the recipient has not registered for a Nigerian tax identification number.
VAT on imported services
Nigerian VAT is 7.5%. Under the 2025 reforms, VAT is due where a service is consumed in Nigeria, wherever the supplier is based. Non-resident suppliers of goods or services to Nigeria are required to register for VAT. Where the customer is a VAT-registered Nigerian business, it generally self-accounts for the VAT under a reverse charge. If you sell digital services to Nigerian consumers, check whether you need to register and charge VAT yourself.
Double tax treaties
Nigeria has double tax treaties in force with 15 countries, including the United Kingdom, Canada, France, the Netherlands, Spain, Belgium and Sweden. There is no treaty with the United States. The UK–Nigeria agreement dates from 1987. It caps Nigerian tax on interest and royalties at 12.5%, and on dividends at 12.5% or 15% depending on the holding, but Nigeria's domestic withholding rate of 10% is already lower, so in practice 10% applies and the main benefit for a UK firm is the ability to credit Nigerian tax against UK tax on the same income. US firms rely on their domestic foreign tax credit rules instead.
| Where you are based | Treaty with Nigeria | What to keep |
|---|---|---|
| United Kingdom | Yes (1987) | WHT receipt, invoice, contract; claim relief through HMRC |
| Canada | Yes | WHT receipt; claim foreign tax credit with the CRA |
| United States | No | WHT receipt; foreign tax credit rules under US law |
| France, Netherlands, Spain, Belgium, Sweden | Yes | WHT receipt and a certificate of residence if requested |
| Other EU countries | Check; many have none | WHT receipt; domestic relief rules |
Compliance: sanctions, FATF status and KYC
Nigeria's compliance profile improved markedly in 2025. The Financial Action Task Force (FATF) placed Nigeria on its list of jurisdictions under increased monitoring (the "grey list") in February 2023. At its plenary of 22–24 October 2025 the FATF removed Nigeria, along with South Africa, Mozambique and Burkina Faso, after Nigeria completed its action plan. Reforms cited included the 2022 money laundering and terrorism prevention Acts, an operational beneficial ownership register and better supervision of non-financial businesses.
The European Commission followed. It announced in January 2026 that Nigeria would come off the EU list of high-risk third countries, ending mandatory enhanced due diligence on Nigeria-linked transactions once the change took legal effect, reported as from 29 January 2026.
Delisting lowers friction, but it does not remove your own duties. In practice:
- Screen every counterparty against the sanctions lists that apply to you: the UK's OFSI consolidated list, the US OFAC Specially Designated Nationals list, EU and UN lists. OFAC's list includes Nigerian individuals and companies, among them some bureaux de change, designated for terrorism financing and cybercrime.
- Know your counterparty's owners. Ask for the company's registration with the Corporate Affairs Commission and its beneficial owners.
- Watch for red flags: requests to pay a third party or a personal account instead of the company, last-minute changes to bank details, invoices that do not match the contract, and offers to settle at an unofficial rate.
- Expect Nigerian KYC. Nigerian accounts are tied to a Bank Verification Number (BVN) or National Identification Number (NIN). Providers will ask for them for Nigerian directors and signatories.
AfCFTA and PAPSS: trading across Africa
If your Nigerian relationship is part of wider African business, two initiatives matter.
The African Continental Free Trade Area (AfCFTA) aims to remove most tariffs between African countries. By 2026, 54 of 55 African Union members had signed the agreement and about 50 had ratified it. Implementation is uneven: only some countries have complete tariff schedules in force, and preferences can be claimed in fewer countries than have ratified. Nigeria gazetted its provisional tariff schedule in April 2025, and more than 39 countries trade under the Guided Trade Initiative. If you route goods through a Nigerian or other African entity, check whether your products qualify under the rules of origin.
The Pan-African Payment and Settlement System (PAPSS), run with Afreximbank, lets a payer in one African country pay a recipient in another in their local currencies, without first converting into dollars or euros. As of September 2026 it connected more than 30 countries, 24 central banks and more than 200 commercial banks and payment providers. Volumes grew roughly tenfold between comparable periods of 2025 and 2026. For a foreign firm, PAPSS is mainly relevant to your Nigerian subsidiary paying suppliers in, say, Ghana or Kenya. It does not replace SWIFT for payments from London or New York.
Checklist before your first payment
- Confirm the legal name, registration number and beneficial owners of your Nigerian counterparty, and screen them against the sanctions lists that apply to you.
- Agree the contract currency, the reference exchange rate and who bears bank and FX costs.
- Agree whether fees are net or gross of Nigerian withholding tax, and how VAT will be handled.
- Register for a Nigerian tax ID if your volumes justify it, to avoid higher withholding rates.
- Collect full bank details: NUBAN and bank name for naira; account number, SWIFT/BIC and any intermediary bank for foreign currency.
- Validate the account name before the first payment, and send a small test amount for new payees.
- Issue invoices with everything a Nigerian bank needs to process Form A or Form M.
- Keep withholding tax receipts and payment confirmations for your own tax return.
- Set an approval process: a second approver above a set amount, and a rule that changes to bank details are confirmed by phone.
- Review costs every quarter against the NFEM rate, not against what you paid last time.
Where Pryme fits
Pryme Financial Ltd is a technology company, not a bank. In Nigeria, naira deposits are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit; outside Nigeria, activities are carried out through regulated partners. A business account can be opened from any country; the documents required for your business are shown when you apply.
- One account, four currencies. A business multicurrency account holds NGN, USD, GBP and EUR in separate balances. Money stays in the currency it arrived in until you choose to convert. Check which local account details are available for your business when you apply.
- Conversion with the fee on its own line. Swap shows the rate before you confirm, holds it for about 30 seconds and shows any fee separately. Swap also offers "When it hits", a target rate you approve when it is reached; check whether it is available on your account type.
- Naira payouts. Bulk payouts validate every account name before approval, which suits paying Nigerian contractors and suppliers. As with any provider, ask which route a payout takes, for the reasons set out in the section on remittance rules above.
- Collections and invoicing. Virtual accounts are available over one API for collecting from many customers, and Invoicing is available on the same account. Whatever tool you use, keep each withholding-tax receipt with the invoice it relates to.
- Agents that prepare, people that approve. The Finance and Compliance agents, built and certified by Pryme Intelligence, a separate company, prepare work inside a mandate with a ceiling; above it, a person decides. Nothing moves without approval, and actions are recorded on an audit trail.
- Payroll. Payroll covers Nigeria, Ghana and Kenya for firms with local staff.
See how Pryme's entities fit together, the guide to multi-currency business accounts, and how to get paid in Nigeria.
Go deeper
- How to pay Nigerian contractors from the UKThe routes UK firms use to pay contractors in Nigeria: pounds to a domiciliary account or naira to a local account, with costs, timings and checks.
- Form A and Form M in Nigeria, explainedWhat Form A and Form M are, when a Nigerian client must file them to pay you, and what the CBN's 2026 FX Manual changed for foreign suppliers.
- Nigerian withholding tax for non-resident companiesThe 2026 rates Nigerian clients deduct when paying foreign companies, when it is a final tax, why a Nigerian tax ID matters and how to claim relief.
- The UK–Nigeria double tax treaty: what it coversWhat the 1987 UK–Nigeria tax treaty covers: permanent establishment, rate caps on dividends, interest and royalties, staff, and how UK firms get credit.
- Nigeria and the FATF grey list: what changed for businessNigeria left the FATF grey list in October 2025 and the EU high-risk list in January 2026. What that changes for UK, EU and US firms, and what it does not.
- How Nigeria's official exchange rate is set (NFEM)How the naira's official rate is set: one willing-buyer, willing-seller market, the EFEMS matching system, the FMDQ closing rate and its use in contracts.
- PAPSS explained: paying across Africa in local currencyHow the Pan-African Payment and Settlement System lets a business in one African country pay another in local currency, who can use it and its limits.
- AfCFTA for exporters: tariffs, rules of origin and paymentsHow the African Continental Free Trade Area works for exporters in 2026: tariff cuts, rules of origin, certificates from Nigeria and how payments flow.
- VAT on digital services sold into NigeriaWhen a foreign software, streaming or online business must register for Nigerian VAT, how 7.5% is charged to consumers and businesses, and what to file.
- How to verify a Nigerian company before you pay itSeven checks before you pay a Nigerian supplier or partner: CAC registration, owners, sanctions, tax ID, bank account name, licences and red flags.
Questions people ask
How do I pay a supplier in Nigeria from the UK or US?
Either send a wire in USD, GBP or EUR to the supplier's domiciliary account at a Nigerian bank, or use a provider that converts your money and pays naira into their local account. Wires take one to three working days; local naira payouts usually arrive within minutes. Validate the account name first and agree in the contract which currency you pay in.
How do I receive money from a Nigerian client?
Send a complete invoice in your currency with full bank details, a contract reference and a clear service description, because the client's bank needs it to approve FX under Form A. Expect the client to deduct Nigerian withholding tax and ask for the receipt so you can claim relief at home. If you have a naira collection account, the client can pay in naira instantly instead.
Is Nigeria still on the FATF grey list?
No. The FATF removed Nigeria from its list of jurisdictions under increased monitoring at its October 2025 plenary, after Nigeria was listed in February 2023. The EU then announced Nigeria's removal from its high-risk third country list in January 2026. You still need to screen counterparties against sanctions lists and carry out normal due diligence.
What withholding tax applies when a Nigerian company pays a foreign firm?
As of 2026, the published rate for consulting, technical, management and professional fees paid to non-resident companies is 10%, and 5% for other services. The rate can double if the foreign firm has no Nigerian tax ID. The UK, Canada and some EU countries have treaties with Nigeria; the US does not.
Do I have to charge Nigerian VAT on services to Nigerian clients?
Nigerian VAT is 7.5% and applies to services consumed in Nigeria. Non-resident suppliers are required to register, and a VAT-registered Nigerian business customer generally self-accounts for the VAT under a reverse charge. Take local advice if you sell directly to consumers.
Should I invoice Nigerian clients in dollars or naira?
Invoicing in your own currency protects you from naira moves but adds an FX step for your client. Invoicing in naira is faster for them but leaves you with conversion risk. Many firms invoice in dollars or pounds with a clear reference rate, or offer a naira option through a local collection account.
Can Nigerian contractors be paid in US dollars?
Yes, if they hold a domiciliary account at a Nigerian bank and you send a wire in USD. Personal remittances sent through money transfer operators are paid out in naira under CBN rules, so confirm with your provider which route your payment takes.
What is PAPSS and does it help foreign companies?
PAPSS is a pan-African system that settles payments between African countries in local currencies, without converting through dollars first. It connects more than 30 countries as of 2026. It mainly helps African entities pay each other, such as a Nigerian subsidiary paying a supplier in Ghana.
Sources
- Central Bank of Nigeria: Foreign Exchange Structure and Management · accessed Oct 2026
- Nairametrics: FMDQ changes I&E window to NAFEM (Oct 2023) · accessed Oct 2026
- Mondaq: CBN revised guidelines for Nigeria's foreign exchange market (EFEMS) · accessed Oct 2026
- Mondaq: The CBN Foreign Exchange Manual 2026 · accessed Oct 2026
- Kola King: Naira loses 69% of its value since FX reforms (FMDQ data) · accessed Oct 2026
- Kola King: Naira sinks to record low at ₦1,700 (Oct 2024) · accessed Oct 2026
- TechEconomy: Dollar to naira exchange rate, 2 October 2026 · accessed Oct 2026
- Kola King: CBN revised IMTO guidelines (Jan 2024) · accessed Oct 2026
- AllAfrica: CBN bans foreign currency payments for diaspora remittances from 1 May 2026 · accessed Oct 2026
- PwC Tax Summaries: Nigeria corporate withholding taxes · accessed Oct 2026
- PwC Tax Summaries: Nigeria foreign tax relief and tax treaties · accessed Oct 2026
- KPMG: Nigeria Tax Act 2025 reforms (June 2026) · accessed Oct 2026
- Mondaq: Taxation of digital activities and cross-border transactions under the Tax Reform Acts 2025 · accessed Oct 2026
- GOV.UK: 1987 UK–Nigeria double taxation agreement · accessed Oct 2026
- HMRC Double Taxation Relief Manual: DT14400 Nigeria · accessed Oct 2026
- ALN: Nigeria removed from FATF grey list · accessed Oct 2026
- AllAfrica: EU removes Nigeria from high-risk financial list (Jan 2026) · accessed Oct 2026
- Legit.ng: OFAC SDN list designations of Nigerian individuals and firms (Sept 2026) · accessed Oct 2026
- Rio Times: AfCFTA status 2026 · accessed Oct 2026
- TechEconomy: PAPSS targets accelerated adoption as network expands (Sept 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.