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
If the person in Nigeria runs their own business, controls how the work is done and invoices you, they are usually a contractor: you pay invoices and they handle their own Nigerian tax. If you set their hours, direct the work and treat them as part of the team, the relationship looks like employment, which brings Nigerian PAYE, pension at a minimum 18%, NSITF and other duties, and needs a Nigerian employer such as a subsidiary or an employer of record. Choose on how the work really runs, not on the label in the contract.
Why the label matters
Hiring someone in Lagos or Abuja from Dublin often starts informally: a developer or a virtual assistant paid monthly by transfer. That works until the relationship looks like employment in everything but name. At that point Nigerian employment duties, which the Irish company is not set up to meet, may apply. Getting the classification right at the start is cheaper than fixing it later.
Signs of each
| Points to a contractor | Points to an employee |
|---|---|
| Agrees a result or project, and decides how to deliver it | Told how, when and where to work |
| Has other clients and markets their services | Works only for you, full time, long term |
| Uses their own equipment and pays their own costs | Uses your laptop, accounts and systems as staff do |
| Invoices you, often for variable amounts | Paid a fixed monthly sum regardless of output |
| Can send a substitute or subcontract | Must do the work personally |
| Bears the risk of a job overrunning | Paid for time, including leave and sick days |
No single sign decides it; what matters is the whole relationship as it runs in practice. If most of the right-hand column describes your arrangement, treat it as employment and get local advice.
If they are a contractor
- Sign a services agreement setting out deliverables, fees, invoicing, intellectual property and confidentiality. See which law governs a cross-border contract.
- Pay against invoices. Keep each invoice with the transfer record; Revenue asks for the documents behind your figures to be kept for six years.
- The contractor handles their own Nigerian tax. DLA Piper's August 2026 guide notes that a person living in Nigeria and earning from foreign payers must register for tax.
- There is no PenCom duty on you; PenCom's Micro Pension Plan exists for self-employed people who want to save.
- Record the cost in euro at a consistent rate; see which exchange rate to use.
If they are an employee
An employee in Nigeria needs a Nigerian employer that registers for and runs the statutory deductions. For an Irish company, that means a Nigerian subsidiary or an employer of record. The core duties are:
| Duty | Rule | Source |
|---|---|---|
| Written terms | Within three months of starting | Labour Act s.7 |
| Pay | In legal tender, at intervals of no more than a month | Labour Act ss.1, 9, 15 |
| PAYE | Remitted by the 10th of the following month | PwC, reviewed 29 May 2026 |
| Pension | Minimum 10% employer and 8% employee; private organisations with three or more staff | PenCom FAQ, 2023 |
| NSITF | 1% of total monthly payroll | NSITF services page |
| Notice | From one day to one month depending on length of service | Labour Act s.11 |
Details are in Nigerian PAYE, PenCom contributions and employer of record.
Does staff in Nigeria create a Nigerian tax presence?
This is the question Irish founders ask next. PwC's Nigeria summary, reviewed on 29 May 2026, lists what creates a taxable presence for a non-resident company, including a fixed place of business, a dependent agent authorised to conduct business, and services furnished in Nigeria through employees, agents or subcontractors. It also says that employing Nigerian residents alone is not a permanent establishment if they do not mainly serve Nigerian customers. A developer building software for Irish clients is a different case from a salesperson signing Nigerian contracts. Take advice before giving anyone in Nigeria authority to conclude contracts.
Worked example (illustrative)
An Irish start-up has two people in Lagos. Chioma designs marketing material for three other clients and invoices ₦900,000 a month for set deliverables; she is treated as a contractor and paid against invoices. Emeka works full time on the start-up's systems, on its laptop, in its daily meetings, for a fixed ₦1,500,000 a month. His arrangement looks like employment, so the start-up moves him onto an employer of record. Using illustrative rates, the employer pension on his pay is ₦150,000 (10%) and NSITF ₦15,000 (1%), so the statutory cost before the EOR fee, PAYE and other items is ₦1,665,000 a month.
What to check first
- Describe how the work will run in practice, using the table above.
- If it is a contractor arrangement, write the contract to match reality, and review it yearly.
- If it is employment, choose a subsidiary or an employer of record before the start date.
- Ask an Irish adviser whether the arrangement raises any Irish tax or employment questions for your company.
- Keep all agreements, invoices and payslips for six years.
Where Pryme fits
From a Pryme Business Account you can pay contractors in naira through bulk payouts, converting with Swap at a rate shown before you approve. The Compliance agent can keep a register of who is a contractor and when each contract is due for review; a person approves changes.
Questions people ask
How do I know if my Nigerian worker is a contractor or an employee?
Look at how the work runs: control, exclusivity, equipment, fixed pay and personal service. If they work like staff, treat it as employment and get advice.
Does an Irish company deduct Nigerian tax from a contractor?
Generally the contractor handles their own Nigerian tax. DLA Piper notes that people in Nigeria earning from foreign payers must register for tax.
What do I owe a Nigerian employee as an Irish company?
Through a Nigerian employer: PAYE, pension of at least 18% combined, NSITF at 1% of payroll, written terms within three months, and notice under the Labour Act.
Does hiring in Nigeria create a permanent establishment?
PwC says employing Nigerian residents alone is not a PE if they do not mainly serve Nigerian customers, but authority to sign contracts or serving Nigerian clients can change that.
Sources
- Labour Act (Cap L1 LFN 2004), full text · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate residence (reviewed 29 May 2026) · accessed Oct 2026
- PenCom: Frequently asked questions (2023 edition) · accessed Oct 2026
- NSITF: Services · accessed Oct 2026
- DLA Piper Africa: FAQs on payroll taxes and employer liability (28 Aug 2026) · accessed Oct 2026
- Revenue: Keeping records (published 20 Oct 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.