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
A Nigerian company places a fixed deposit through its corporate account, on the written instruction of its authorised signatories and usually backed by a board resolution that allows the investment. The tenor should match when the business will next need the cash, and the bank deducts withholding tax on the interest, which the company keeps evidence of to credit against its own tax.
Many businesses hold more cash than they need for the next few weeks: tax set aside, a supplier payment due next quarter, retained profit waiting for a project. Leaving it in a current account earns little. A fixed deposit is the simplest way to earn on it, but a company cannot just tap a button the way an individual can. This article covers the authority, the paperwork, the tenor decision and the tax treatment.
Who can authorise the deposit
A company acts through its board and the signatories it appoints. When the business account was opened, the bank collected a mandate that says who can sign and in what combination. Access Bank's corporate account page, for example, lists a board resolution among the opening documents, alongside the certificate of incorporation, memorandum and articles, CAC forms, a search report, two references, ID and BVN for each signatory, and a TIN. That resolution and mandate govern a fixed deposit too.
Access Bank's fixed deposit application form, as one bank's example, asks for the mandate of the investors and authorised signatories, the account to debit, and an instruction for where the money goes at maturity: credit an account, issue a draft, or transfer by NIBSS or RTGS. Two signature blocks reflect the common two-to-sign mandate.
When a fresh resolution helps
- The amount is large relative to the company's cash, or the articles reserve investment decisions to the board.
- The tenor is long, so the money is locked away beyond the next reporting date.
- The deposit will be used as security for a loan; see using a fixed deposit as collateral.
- The deposit is with a bank where the company does not yet bank, which means a new account and new mandate.
Documents the bank will want
If the company already has a corporate account with the bank, a signed instruction or application form is often all that is needed. If not, expect the full corporate account opening pack described above. Under the Nigeria Tax Administration Act 2025, as explained by Premium Times (12 November 2025), banks must ask taxable persons for a Tax ID, and companies have one generated from their CAC details, so make sure the company's Tax ID is on record.
Matching tenor to cash flow
The most common mistake is locking money away for a higher rate and then needing it before maturity, which usually means losing some or all of the interest. Work from the company's cash-flow forecast instead of the rate table.
Example (figures are illustrative): a trading company has ₦30,000,000 above its operating buffer. It owes VAT and payroll within a month, a supplier deposit in about three months, and has no known use for the rest for six months.
| Slice | Amount | Tenor | Why |
|---|---|---|---|
| A | ₦10,000,000 | 30 days | Covers tax and payroll; rolls over if not needed |
| B | ₦10,000,000 | 90 days | Matures before the supplier deposit is due |
| C | ₦10,000,000 | 180 days | Surplus with no planned use in the period |
Splitting like this, sometimes called laddering, keeps cash arriving regularly. Our guide to fixed deposit laddering covers it in detail.
Withholding tax on a company's deposit interest
The bank deducts WHT from the interest before paying it. For a company, that deduction is generally not the end of the matter: it is a credit to be set against the company's income tax, which is why the company should keep the deduction evidence. Commentary on the 2025 directive on short-term securities notes that investors must track tax withheld so they can claim it as credits. Ask the bank what rate it applies to corporate deposit interest and how it issues credit notes; our article on getting WHT credit notes explains why they matter.
Getting a better rate on a large sum
Companies placing large amounts are in a stronger position than individuals to ask for a better rate. Sterling Bank, for example, describes its fixed deposit rate as "negotiable and competitive". Ask two or three banks for a written quote on the same amount, tenor and payout option on the same day, and compare them net of WHT. If the money may be needed at short notice, ask whether the bank offers a call deposit, which can be withdrawn on demand at a lower rate; see call deposit vs fixed deposit. Record who approved the placement and why that bank was chosen, so the decision can be explained to the board or auditors later.
Safety and limits
NDIC cover is per depositor, per bank: the NDIC's FAQ gives a maximum of ₦5,000,000 at deposit money banks and ₦2,000,000 at microfinance banks, with all branches of one bank counted together. A company placing tens of millions with one bank is mostly uninsured, so the bank's strength matters more than the last half point of rate. Spreading across banks reduces concentration but adds administration.
Where Pryme fits
A Pryme Business Account comes with a Finance agent and a Chief of Staff agent, built by Pryme Intelligence, that prepare work such as a cash-flow view of what is due when; a person approves anything above a set ceiling and actions are recorded. That forecast is what tells you how much can safely be placed and for how long. See the Finance agent and multiple accounts for keeping tax and payroll money apart.
Questions people ask
Can a company open a fixed deposit in Nigeria?
Yes. It places the deposit through its corporate account on the instruction of its authorised signatories, usually under a board resolution. The bank may use a short application form if the company already banks there.
Do I need a board resolution for a fixed deposit?
Banks ask for one when opening the corporate account, and a specific resolution is wise for large or long deposits, or where the articles reserve investment decisions to the board.
Is WHT on company fixed deposit interest final tax?
For companies it is generally a credit against income tax rather than a final tax. Keep the bank's deduction evidence and confirm treatment with a tax adviser.
How much of a company's fixed deposit is NDIC insured?
The NDIC's FAQ gives up to ₦5,000,000 per depositor at a deposit money bank and ₦2,000,000 at a microfinance bank, so large corporate deposits are mostly uninsured.
Sources
- Access Bank: Corporate Account · accessed Oct 2026
- Access Bank: 1 Year Fixed Rate Deposit application form (PDF) · accessed Oct 2026
- AllAfrica (Premium Times): explainer on the Nigeria Tax Administration Act 2025 and Tax ID registration (12 Nov 2025) · accessed Oct 2026
- Mondaq (Advocaat Law Practice): FIRS imposes 10% withholding tax on interest on short-term securities (14 Nov 2025) · accessed Oct 2026
- NDIC: Frequently asked questions · 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.