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
Federal ministries, departments and agencies (MDAs) now pay vendors through the Treasury Management and Revenue Assurance System (TMRAS), which the Office of the Accountant-General of the Federation made the sole payment platform after 4 May 2025, replacing Remita. TMRAS will not release a payment without its tax components, so expect VAT, withholding tax and stamp duty to be deducted, and have your tax registration and contract documents in order before you invoice.
Contractors still search for GIFMIS and Remita when they ask how government pays. The payment platform has changed, and knowing the current route saves weeks of chasing the wrong office. This guide covers federal MDAs; state governments run their own treasury systems, so check with the state's Ministry of Finance or Accountant-General if your client is a state body.
What changed: Remita to TMRAS
According to Techeconomy (4 March 2025), reporting a circular from the Accountant-General of the Federation, Dr Oluwatoyin Madein, TMRAS went live on 4 March 2025 as the official payment platform for MDAs. Remita ran alongside it until 4 May 2025, after which MDAs had to process all payments through TMRAS. Phase one covers naira payments and collections and automates tax deductions on vendor payments; phase two, from 1 June 2025, adds foreign exchange and integration with MDA systems.
Two points from the circular matter directly to vendors:
- Vendors must be registered with the tax authority to receive payments. The report refers to FIRS, which has since been replaced by the Nigeria Revenue Service (NRS).
- "The system shall not permit any payment without the associated tax components", covering VAT, withholding tax and stamp duty.
GIFMIS, the Government Integrated Financial Management Information System, is the name many vendors still hear for the federal accounting system. The reports we checked do not set out how TMRAS and GIFMIS connect internally, so rely on what the MDA's finance department tells you about its current process rather than older guides.
The documents to have ready
Each MDA has its own procurement and payment checklist, so ask its procurement or finance unit for the list in writing. Commonly requested items include:
- The award letter or contract, and your written acceptance.
- Evidence of tax registration (TIN) and, where applicable, VAT registration with the NRS.
- Company registration documents and bank details in the company name.
- Your invoice or claim, quoting the contract reference.
- Evidence of delivery or completion: a store receipt voucher for goods, a completion or inspection certificate for works or services.
- Any performance bond or advance payment guarantee the contract requires.
Inside the MDA, the claim is typically checked by the user department, procurement and internal audit before the payment voucher is raised and approved. Delays usually arise at certification of completion, so make sure the certifying officer has inspected and signed. Keep copies of every document you submit, with the date and the name of the officer who received it, because a missing page discovered at audit stage can send a claim back to the start.
Deductions to expect
Because TMRAS deducts tax at source, the amount that reaches your account will be less than the contract sum. Withholding tax rates under the Withholding Tax Regulations 2024, as summarised by Udo Udoma & Belo-Osagie on Mondaq (July 2024), include:
| Type of contract | WHT rate for resident recipient |
|---|---|
| Supply of goods or materials (not manufacturers) | 2% |
| Construction of roads, buildings, power plants, bridges | 2% |
| Other construction and related activities | 5% |
| Other services | 2% |
| Consultancy, professional, management, technical fees | 5% |
The same summary confirms that government ministries, agencies and statutory bodies are among those required to deduct. VAT is at 7.5% under the Nigeria Tax Act 2025, per Forvis Mazars (March 2026). The stamp duty rate applied to contracts was not stated in the sources we checked; ask the MDA's finance unit how it computes stamp duty on your contract.
Worked example
Example only, before stamp duty. A supplier delivers equipment on a contract of ₦10,000,000 plus 7.5% VAT (₦750,000). If the MDA withholds the VAT for remittance and deducts 2% WHT on the ₦10,000,000 (₦200,000), the vendor receives ₦9,800,000. Check: ₦10,750,000 minus ₦750,000 minus ₦200,000 equals ₦9,800,000. Stamp duty, if deducted, would reduce this further. How VAT is handled on government payments should be confirmed with the MDA and your accountant.
Steps to get paid
- Before signing, confirm your NRS registration and TIN match your company name exactly.
- Price the contract with the deductions in mind, so the net payment covers your costs.
- Deliver, then get the completion or receipt certificate signed promptly.
- Submit the invoice and supporting documents to the address the MDA names, and get an acknowledgement copy stamped and dated.
- Follow up with the finance unit using the contract reference and acknowledgement date.
- On payment, request evidence of the WHT and stamp duty deducted so you can claim credit; see getting your WHT credit notes back.
Government tenders may also ask you to prove financial capability before award.
Where Pryme fits
A Pryme Business Account supports invoicing, and any customer can generate a verifiable statement with VerifyDoc.ai when a counterparty needs to check payment records are genuine. The Compliance agent prepares work for a person to approve; it does not replace the MDA's own requirements.
Questions people ask
Is Remita still used for government payments to contractors?
For federal MDAs, Techeconomy reported in March 2025 that TMRAS replaced Remita, with the two running in parallel until 4 May 2025. After that, MDAs were to process all payments through TMRAS.
What is TMRAS?
The Treasury Management and Revenue Assurance System, introduced by the Office of the Accountant-General of the Federation in March 2025 for MDA payments and collections. It automates tax deductions on vendor payments.
Why is my government payment less than the contract sum?
TMRAS will not process a payment without its tax components: VAT, withholding tax and stamp duty. WHT is 2% for goods and many works and 5% for professional fees under the 2024 regulations summary.
Do I need a TIN to be paid by a ministry?
Yes. The OAGF circular, as reported, requires vendors to be registered with the tax authority (now the NRS) to receive payments.
Sources
- Techeconomy: FG introduces new payment system (TMRAS) to replace Remita (4 Mar 2025) · accessed Oct 2026
- Mondaq (Udo Udoma & Belo-Osagie): An overview of the Nigerian Withholding Tax Regulations of 2024 (11 Jul 2024) · accessed Oct 2026
- Forvis Mazars: VAT and Nigeria's 2025 tax reforms, key changes for businesses (16 Mar 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.