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
Put any loan to a Nigerian business in a written, signed and stamped agreement that names the borrower company, the amount and currency, the interest and how it is calculated, the repayment dates, any security or guarantee, and which courts decide disputes. If the money arrives in foreign currency, have the bank issue an eCCI, and remember that tax may be withheld on interest paid to you.
Diaspora lending often starts informally: a cousin's shop needs stock, a friend's logistics company needs a van, and the money goes over with a WhatsApp message as the only record. When repayment goes well nobody minds. When it does not, there is nothing to show what was agreed. A short written agreement protects both sides and costs far less than a dispute.
Loan or investment?
Decide first whether you are lending or buying a stake. A loan is repaid with interest whether or not the business does well; you do not share in the upside. An equity investment buys shares, so you share profit and loss but are not repaid on a date. Some deals mix the two (a loan that can convert into shares). Each needs different documents; this guide covers the loan.
What the agreement should say
- Parties. The borrower is the company, named exactly as on its CAC record with its RC number, not the founder personally, unless you want the founder to guarantee it.
- Amount and currency. State whether the loan is in pounds, dollars or naira, and the currency of repayment. If you lend in pounds and are repaid in naira, say which exchange rate applies and on what date.
- Interest. The rate, whether it is per year or per month, simple or compounding, and when it is paid. Write it as an annual figure even if paid monthly, so both sides see the full cost.
- Repayment. A schedule with dates and amounts, and whether early repayment is allowed.
- Default. What counts as default (a missed payment, insolvency, sale of the business), the notice period to fix it, and any default interest.
- Security. A charge over assets, a personal guarantee from a director, or post-dated instruments. A charge granted by a company should be registered with CAC.
- Information. The right to receive monthly accounts or bank statements while the loan is outstanding.
- Governing law and courts. Nigerian law with Nigerian courts is usually easiest to enforce against a Nigerian borrower.
For a general checklist on Nigerian loan paperwork, see the personal loan agreement checklist.
A worked example of the cost
The figures are an example only. You lend ₦20,000,000 for 12 months at 18% a year simple interest, with interest paid monthly and the principal repaid at the end.
| Line | Amount |
|---|---|
| Monthly interest: ₦20,000,000 × 18% ÷ 12 | ₦300,000 |
| Interest over 12 months | ₦3,600,000 |
| Principal repaid at month 12 | ₦20,000,000 |
| Total paid by the borrower | ₦23,600,000 |
If 10% tax were withheld from each interest payment (see below), you would receive ₦270,000 a month instead of ₦300,000, or ₦3,240,000 of interest over the year. Whether that is a final tax or a credit against other tax depends on your circumstances.
Tax on the interest
Nigeria withholds tax on interest. BusinessDay reported in February 2026 that a 10% withholding tax on interest is being deducted under the new tax laws; how it applies to a loan from a non-resident individual to a company should be confirmed with a Nigerian tax adviser. The UK-Nigeria Double Taxation Convention limits the tax Nigeria may charge a UK resident on interest to 12.5% (Article 11). As a UK resident you generally declare the interest on your UK return and may be able to claim credit for Nigerian tax withheld. This is information, not tax advice; see our guide to treaty rates on dividends and interest.
Getting the money in and out
If you send foreign currency to fund the loan, ask the receiving Nigerian bank to register it on an electronic Certificate of Capital Importation. Pavestones Legal's summary of the CBN Foreign Exchange Manual 2026 says capital is registered on the eCCI within 24 to 48 hours of the inflow. Without that record, buying foreign currency later to repay you through official channels can be harder.
Stamping and enforcement
A loan agreement is a stampable instrument. A review of the Nigeria Tax Act 2025 notes instruments must be stamped within 30 days of execution and that unstamped instruments are inadmissible in civil proceedings, so stamp it. If you ever sue in England instead, a Mondaq guide (June 2026) explains that judgments of UK superior courts can be registered in Nigeria under the Reciprocal Enforcement of Judgments Ordinance, usually within 12 months of the judgment.
Lending as a business
One loan to a company you know is different from lending to many borrowers for profit. Lagos, for example, requires money lenders to be licensed by the state: a Pavestones Legal summary (2021) lists a licence renewed annually, tax clearance, a banker's reference and office inspection. If you plan repeat lending, take advice on licensing first.
Where Pryme fits
A Pryme account holds pounds and naira, so you can receive interest in naira and decide when to convert. Swap shows the rate and the fee before you approve. Ask the borrower to send each repayment with a verifiable receipt generated through VerifyDoc.ai, which gives you a clean record if the loan is ever disputed.
Questions people ask
Can I lend money to a Nigerian company from the UK?
Yes. Use a written agreement with the company as borrower, stamp it, and if you send foreign currency make sure an eCCI is issued.
Is tax deducted from interest paid to me from Nigeria?
Withholding tax on interest applies in Nigeria; the treaty caps Nigerian tax on interest for UK residents at 12.5%. Confirm the current rate with a Nigerian tax adviser.
Do I need a lawyer for a loan agreement in Nigeria?
Not by law for a simple loan, but a Nigerian lawyer can make sure the agreement, any security and stamping will stand up if you need to enforce.
What happens if the business does not pay back?
You follow the default clause: notice, then demand, then court or arbitration. Security or a guarantee makes recovery more realistic.
Sources
- GOV.UK: UK-Nigeria Double Taxation Convention (in force text) · accessed Oct 2026
- BusinessDay: Why withholding tax was deducted from savings interest (21 Feb 2026) · accessed Oct 2026
- Mondaq (Pavestones Legal): The CBN Foreign Exchange Manual 2026 (24 Jun 2026) · accessed Oct 2026
- Odubunmi, NAU Journal of Private and Public Law: stamp duty under the Nigeria Tax Act 2025 (Apr 2026) · accessed Oct 2026
- Mondaq (Adeola Oyinlade & Co): Enforcing UK and US judgments in the Nigerian Federal High Court (24 Jun 2026) · accessed Oct 2026
- Mondaq (Pavestones Legal): Money lenders licence requirements in Lagos State (30 Aug 2021) · 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.