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
Start with the contract: a fixed due date, the currency, a late-payment clause stated as a genuine pre-estimate of loss, and the law and courts that apply. If reminders fail, send a formal letter of demand; in Lagos, the Small Claims Court hears liquidated money claims up to ₦5,000,000 where the defendant resides or does business in Lagos, starting with a demand form that gives 14 days.
Chasing money from Madrid or Valencia is harder than chasing it from Ikeja: you cannot walk into the client's office, the time zone is an hour behind or level with Lagos depending on the season, and court action in Nigeria is slow and expensive from abroad. Most late payments are still recovered without a court. This guide covers the contract terms that help, a reminder sequence, and the formal options. It is information, not legal advice.
First, check it is really late
- Withholding tax: a Nigerian company will usually deduct WHT (PwC lists 10% for non-resident professional fees, reviewed May 2026). A payment 10% short may be paid in full. Ask for the WHT receipt.
- Bank charges: SWIFT transfers can lose intermediary fees on the way. A small shortfall may be charges, not non-payment.
- Approval queues: larger Nigerian firms often pay only against a purchase order or after internal approval. Ask who approves and when the payment run is.
- FX documentation: if the client is buying foreign currency to pay you, the bank may ask for the contract, invoice and evidence of tax paid (Stanbic IBTC lists these for contract service fees). Missing paperwork delays payment.
Contract terms that make chasing easier
If you are reading this before the next contract, these clauses are worth adding:
- Payment due date in days from invoice, and the currency.
- Deposit or milestone payments, so you never carry the whole fee at risk.
- Late-payment charge. Under Nigerian law, as BusinessDay explained on 2 October 2025, a liquidated damages clause that is a genuine pre-estimate of loss is enforceable without proof of loss, while a penalty meant to deter is not, and the claimant must then prove actual loss. Set the figure with reasons and keep a note of them.
- Right to pause work after a stated number of days overdue.
- Governing law and forum: which country's law applies and where disputes are heard. A Spanish court clause sounds safer, but a Spanish judgment still has to be turned into something enforceable in Nigeria, which is a separate process. Take advice before choosing.
We found no Nigerian statute that adds statutory interest to late business invoices, so the contract is your main source of a late charge.
A reminder sequence
| When | What to send |
|---|---|
| Due date minus 3 days | Friendly note with the invoice attached and payment details repeated |
| Due date plus 3 days | Short reminder; ask whether anything is missing for approval |
| Plus 14 days | Call or voice note to the person who commissioned the work and to finance |
| Plus 30 days | Written notice that work is paused under the contract and the late charge is running |
| Plus 45 days | Formal letter of demand with a deadline and the next step stated |
Keep everything in writing even after calls: a short email confirming what was said becomes evidence later.
Formal options in Nigeria
Lagos Small Claims Court
The Lagos State Practice Direction on the Small Claims Court 2023 covers liquidated money demands not exceeding ₦5,000,000, excluding interest and costs, where the claimant or defendant resides or carries on business in Lagos or the cause arose there. The process begins with a Letter of Demand on Form SCA 1, giving the defendant 14 days, followed by a complaint on Form SCA 2 with your documents (contract, invoices, receipts). The Practice Direction targets a hearing within 30 days and filing-to-judgment within 60 days, and companies appear through a secretary or principal officer. It does not state fee amounts, and it is silent on how a claimant abroad takes part, so you may need a lawyer or representative in Lagos.
A claim in dollars has to be expressed in a way the court accepts; ask a Lagos lawyer how a foreign-currency debt is stated against the ₦5,000,000 limit.
Above the small-claims limit
Larger debts go to the ordinary courts or, if your contract has one, to arbitration. Both normally need a Nigerian lawyer. Weigh the legal cost against the debt before starting.
Before you go formal
A letter from a Nigerian lawyer on firm letterhead often prompts payment where your own emails did not. Ask for a fixed fee for a demand letter before agreeing to anything larger.
The Spanish side
For Spanish tax, ask your gestor how an unpaid invoice is treated: income is normally recorded when invoiced, so an unpaid invoice may still sit in your Modelo 130 figures until it is formally treated as a bad debt. See filing Modelo 130 with income from Nigerian clients. For invoice wording that avoids disputes, see invoicing a Nigerian client from Spain.
Where Pryme fits
Pryme's invoicing and the Finance agent in a Business Account can prepare reminders on your schedule; nothing is sent above your set ceiling without your approval, and actions are recorded. Verifiable receipts and statements from VerifyDoc.ai give you clean evidence of what was paid and when.
Questions people ask
Can I charge interest on a late Nigerian invoice?
Only if your contract provides for it. Under Nigerian law a genuine pre-estimate of loss is enforceable; a penalty meant to deter is not. We found no statute adding interest automatically.
Can I sue a Lagos company from Spain?
The Lagos Small Claims Court hears liquidated claims up to ₦5,000,000 where the defendant is in Lagos. The Practice Direction does not explain participation from abroad, so a local representative may be needed.
My client paid 10% less. Is that late payment?
Probably not. It is likely Nigerian withholding tax. Ask for the WHT receipt.
Should my contract choose Spanish courts?
It may help, but a Spanish judgment still needs a separate process to be enforced in Nigeria. Take legal advice on the clause.
Sources
- Lagos State Practice Direction on the Small Claims Court 2023 (Lagos MEPB copy) · accessed Oct 2026
- BusinessDay: liquidated damages and penalty clauses in Nigerian contracts (2 Oct 2025) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- Stanbic IBTC: approved documents for invisible FX transactions · 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.