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 gym can fund equipment by paying cash, by hire purchase (you own the machines only after the final instalment), by a lease (the lessor keeps ownership; under the Equipment Leasing Act 2015 every equipment lease must be registered within 14 days of starting), or with a business loan. Compare them on total cost over the term, not the monthly payment, and add import costs (customs duty, VAT, clearing and exchange rate) if the equipment comes from abroad. For tax, owned equipment attracts capital allowances, while lease rentals are a running cost on which a corporate payer deducts 10% withholding tax.
The four ways to pay
| Option | Who owns the equipment | What you pay | Main risk |
|---|---|---|---|
| Cash purchase | You, immediately | Full price upfront | Ties up cash you may need for rent and staff |
| Hire purchase | The seller or financier until the last instalment | Deposit plus instalments, usually more than the cash price | Repossession if you default; the true interest is hidden in the instalments |
| Lease | The lessor, throughout (unless you buy at the end) | Regular rentals | Rentals continue even if membership falls |
| Business loan | You, with the lender often taking security | Loan repayments with interest | Default puts the security at risk |
Hire purchase
Hire purchase is governed by the Hire Purchase Act (Cap H4, Laws of the Federation 2004). As summarised by LawGlobalHub, ownership passes on the final payment; the hirer may end the agreement by written notice before the last instalment, but then owes arrears and enough to bring payments up to half the hire-purchase price, plus damages for lack of care. Once half the hire-purchase price for goods has been paid, the owner can only recover the goods through court action. The Act's financial limit was written in pounds in 1965, so whether it applies to a large equipment deal is a question for your lawyer; the contract terms will matter most.
The instalment price hides an interest rate. Our guide to the interest hidden in hire purchase shows how to work it out, and the hire purchase agreement template lists the clauses to look for.
Leasing and the Equipment Leasing Act 2015
A lease lets you use the equipment while the lessor keeps ownership. A Mondaq overview by Olajide Oyewole LLP (August 2022) explains the two main kinds:
- Finance lease: long-term and not cancellable except by agreement, with rentals that cover the lessor's full outlay. At the end you can usually buy the equipment or extend. You usually maintain it.
- Operating lease: shorter than the equipment's useful life, with total rentals below its cost. The lessor keeps the risks, usually maintains it, and resells it when returned.
Under the Equipment Leasing Act 2015, every equipment lease must be registered with the Equipment Leasing Registration Authority within 14 days of commencement, whatever its value. An unregistered lease is invalid between the parties and cannot be enforced against a third party who bought in good faith without notice. The same overview notes the authority had not yet been inaugurated at the time of writing, so ask your lessor how it is registering the lease. Lessors must be limited companies whose memorandum permits leasing, and the CBN regulates finance leasing through finance company licences.
Importing equipment
Much commercial gym equipment is imported. On top of the supplier's price, budget for:
- Shipping and insurance to a Nigerian port.
- Customs import duty and levies, which depend on the equipment's tariff classification. The Nigeria Customs Service publishes the Common External Tariff with a search by commodity on its CET page; check the classification with a licensed customs agent before ordering.
- VAT on the import.
- Clearing, port charges and transport to your gym.
- Exchange rate movements between ordering and paying. Do not convert at a rate you saw weeks ago; get a current quote on the day.
Worked example (illustration only)
A gym needs equipment with a landed cost of ₦24,000,000. All terms are assumptions.
| Option | Payments | Total paid over 3 years |
|---|---|---|
| Cash | ₦24,000,000 upfront | ₦24,000,000 |
| Hire purchase | ₦4,800,000 deposit + 36 × ₦780,000 | ₦32,880,000 |
| Finance lease | 36 × ₦850,000, then ₦240,000 purchase option | ₦30,840,000 |
Hire purchase costs ₦8,880,000 more than cash, and the lease ₦6,840,000 more. Whether that is worth it depends on what the ₦24,000,000 would otherwise earn in your business; if keeping the cash lets you open months earlier, the extra cost may be justified. If the gym has 200 members paying ₦30,000 a month (example), revenue is ₦6,000,000 a month, so the ₦780,000 HP instalment is 13% of revenue; check it still works if membership falls by a quarter.
Tax points
- Capital allowances. Under the Nigeria Tax Act 2025, PwC's summary (reviewed May 2026) lists plant and other equipment in Class 2, written off at 20% a year on a straight-line basis, with the initial allowance removed. The asset must have had VAT or import duty paid to qualify.
- Withholding tax on lease rentals. PwC's withholding tax summary lists rent, hire or lease at 10%, so a company paying lease rentals deducts 10% and remits it.
- This is general information, not tax advice; confirm the treatment of your contract with a tax practitioner.
What to check first
- Get the total cost over the term for each option, in writing.
- Ask who maintains and insures the equipment, and what happens if it breaks.
- Read the default and repossession clauses before signing.
- For a lease, ask how and when it will be registered.
- For imports, confirm the tariff classification and all landing costs before paying the supplier.
Where Pryme fits
A Pryme Business Account can hold USD, GBP and EUR alongside naira and convert with Swap, which shows the rate first and the fee on its own line before you approve, useful when paying an overseas supplier. The Finance agent can prepare the cost comparison for you to review.
Questions people ask
Can I lease gym equipment in Nigeria?
Yes. Leasing companies offer finance and operating leases. Under the Equipment Leasing Act 2015 every equipment lease should be registered within 14 days of commencement.
Is hire purchase or leasing better for gym equipment?
It depends on total cost and whether you want to own the machines. Hire purchase ends in ownership; a lease may not. Compare the total paid over the term.
What import duty is charged on gym equipment in Nigeria?
It depends on the tariff classification. Check the Nigeria Customs Service CET search and ask a licensed customs agent before ordering.
Can a gym claim capital allowances on equipment?
Yes, on equipment it owns. PwC's summary of the Nigeria Tax Act 2025 puts plant and equipment in Class 2 at 20% a year.
Sources
- Mondaq (Olajide Oyewole LLP): Leasing business arrangements in Nigeria (30 Aug 2022) · accessed Oct 2026
- LawGlobalHub: Hire Purchase Act · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate deductions (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- Nigeria Customs Service: CET tariff · 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.