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
Staff who live and work in Nigeria owe Nigerian income tax on their pay, whoever employs them. Nigerian law puts the duty to deduct PAYE on the employer, with a 40% penalty for failing to deduct, but the sources we checked do not say how a foreign employer with no Nigerian presence registers with a state tax authority. Many Ghana companies therefore pay through a Nigerian entity or an employer of record, or the employee self-assesses.
A Ghana company that hires a finance officer in Lagos or a sales lead in Abuja has an employee in a different tax system. Nigeria taxes that person's employment income. The question is who handles the paperwork and who carries the risk.
The employee owes Nigerian tax
DLA Piper's August 2026 payroll FAQ on Nigeria says a Nigerian resident earning income from foreign employers is required to register and pay Nigerian tax, subject to treaty relief. Residence turns on domicile, habitual abode, economic ties or at least 183 days' presence in a year. There is no Ghana-Nigeria treaty in force (see Is there a double tax treaty between Ghana and Nigeria?), so no treaty relief applies. On the Ghana side, PwC's Ghana summary taxes non-residents only on income derived in Ghana.
What Nigerian law puts on employers
- The Nigeria Tax Administration Act, 2025 (s.51(6)) requires an employer to deduct income tax from emoluments, and the year's deductions must equal the year's tax.
- PAYE goes to the state tax authority of the state where the employee is resident, for example the Lagos Internal Revenue Service for a Lagos employee.
- PwC's Nigeria summary (May 2026) gives the monthly remittance date as the 10th of the following month; some sources read the 2025 Act as the 21st, so confirm with the state.
- Annual returns of employees' pay are due by 31 January.
- DLA Piper lists the penalties: 40% of tax not deducted, 10% plus interest at the CBN rate on tax not remitted, and ₦100,000 for the first month of a failure to file plus ₦50,000 for each further month.
What the sources do not settle is how these duties bite on a foreign company with no office, branch or registration in Nigeria. A state tax authority cannot easily enforce against an employer it cannot reach, which is why the employee's own obligation matters: DLA Piper notes the employee must still disclose income for final assessment.
The options for a Ghana company
| Route | How it works | What to weigh |
|---|---|---|
| Employee self-assesses | You pay gross; the employee registers with the state tax authority and files and pays. | Simplest for you; puts the burden and the risk of error on the employee. |
| Voluntary PAYE registration | You register as an employer with the state and run PAYE. | Ask the state authority if it will register a foreign employer; you then take on deadlines and penalties. |
| Employer of record | A Nigerian EOR employs the person and runs PAYE and pension. | A fee, but local compliance is handled. See Can my Ghana business use an employer of record in Nigeria?. |
| Nigerian subsidiary | Register a Nigerian company that employs the staff. | Full compliance, plus company costs; sensible once a team grows. |
Paying in naira or in dollars
Some Ghana employers pay Nigerian staff in dollars. DLA Piper notes that for PAYE, foreign-currency pay is converted at the CBN official rate at the time it is paid. Whichever currency you pay in, the Nigerian tax is calculated in naira, so keep a record of the rate used each month. An employee who self-assesses will need the same record for their annual return, which is due within 90 days of the year end, per PwC. Paying in naira avoids the conversion question, but leaves the employee bearing currency risk if their costs are partly in dollars.
What a Ghana employer should collect from each Nigerian hire
- the employee's state of residence, which decides the state tax authority;
- their Nigerian tax identification number;
- their RSA PIN and PFA, if they are in the contributory pension scheme;
- a signed contract stating the gross salary, the currency, and who is responsible for tax and pension;
- proof, each year, that the employee has filed and paid if you have chosen the self-assessment route.
A rough cost example
Example, for illustration only, using the 2026 bands DLA Piper quotes (0% on the first ₦800,000 a year, 15% on the next ₦2.2 million, 18% on the next ₦9 million). An employee earning ₦6,000,000 a year with no reliefs would owe: ₦0 + (₦2,200,000 × 15%) + (₦3,000,000 × 18%) = ₦330,000 + ₦540,000 = ₦870,000 a year, about ₦72,500 a month. Reliefs such as pension contributions and rent relief would lower it. The full bands are in Nigeria PAYE tax bands for 2026.
Other risks to raise with your adviser
- Pension: a Nigerian employer with three or more staff must run contributory pension; see Do I pay Nigerian pension for my Lagos staff from Ghana?.
- Taxable presence: senior staff who sign contracts in Nigeria for your Ghana company may create a taxable presence for the company itself.
- Contractor or employee: calling someone a contractor does not change the facts of the relationship.
Where Pryme fits
Whichever route you choose, someone has to pay naira salaries on time. Pryme payroll on a Business Account that can be opened from Ghana pays staff in naira, and the Finance agent prepares each run for a person to approve.
Questions people ask
Do I pay tax in Nigeria if I work remotely for a Ghana company?
Yes, if you are resident in Nigeria. DLA Piper notes Nigerian residents earning from foreign employers must register and pay Nigerian tax.
Can a foreign company register for PAYE in Lagos?
Ask the Lagos Internal Revenue Service; the sources we checked do not set out a route for employers with no Nigerian presence.
What is the penalty for not deducting PAYE in Nigeria?
40% of the tax not deducted, per DLA Piper (August 2026); 10% plus interest for failing to remit.
When is PAYE remitted in Nigeria?
PwC gives the 10th of the following month; some read the 2025 Act as the 21st. Confirm with the state tax authority.
Sources
- DLA Piper Africa (Olajide Oyewole LLP): FAQs on payroll taxes and employer liability in Nigeria (28 Aug 2026) · accessed Oct 2026
- Nigeria Tax Administration Act, 2025 (gazette copy) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual tax administration (last reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Ghana, foreign tax relief and tax treaties (last reviewed 11 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.