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
The directors are responsible for the company's annual financial statements, even if they live abroad; in practice a Nigerian accountant prepares them and, unless the company is exempt, an auditor audits them. They go to CAC with the annual return (within 42 days after the AGM) and support the company income tax return, which NRS expects within six months of the financial year end.
Who is responsible
Under the Companies and Allied Matters Act 2020 (CAMA) the duty to keep accounting records and produce financial statements sits with the company and its directors. Living in Manchester or Calgary does not move that duty to the manager in Lagos. What you can do is delegate the work: most diaspora-owned companies use a Nigerian chartered accountant to keep or review the books, prepare the statements and liaise with the auditor, while the directors approve and sign. PwC's CAMA compliance note also flags s.405, under which the chief executive or finance officer certifies the statements, including that no material facts were concealed and that internal controls were reviewed.
Three separate outputs come from one set of books:
- Financial statements (balance sheet, profit and loss, notes), approved by the board
- The CAC annual return, which for most companies is filed with the accounts
- The company income tax return to the Nigeria Revenue Service (NRS), which uses the same figures adjusted for tax
Audit, or not? The small-company test
CAMA s.402 exempts a small company from audit (banks, insurers and others CAC prescribes cannot use it). Section 394(3) defines a small company as a private company with turnover of not more than ₦120 million and net assets of not more than ₦60 million, none of whose members is an alien, a government or government agency, or a nominee of either, and whose directors between them hold at least 51% of the equity.
Two points catch diaspora owners. First, the 'no alien member' condition: if a shareholder is a foreign national (for example, a spouse who holds only a British or Canadian passport, or a foreign holding company), the company is not small, whatever its size. A Nigerian citizen living abroad is still a Nigerian citizen; dual citizens should check how their holding is recorded at CAC, see dual-citizen shareholders and CAC. Second, the 51% director-ownership rule fails if the owners have handed the board to non-shareholding managers.
Deadlines at CAC
PwC's summary of CAMA ss.417 to 419 says companies other than single-shareholder companies file annual returns with audited accounts within 42 days after the annual general meeting. Kalepron Attorneys' guide notes that the first return falls due 18 months after incorporation. Small companies and single-shareholder companies need not hold an AGM (s.237), so they file by reference to the anniversary year rather than a meeting; check the portal's due date for your company. The full filing process from abroad is in filing CAC annual returns from abroad, and AGM logistics in AGMs when shareholders live abroad.
| CAC annual return fee (schedule published 29 May 2025) | Amount |
|---|---|
| Issued share capital ₦100,000 to ₦100 million | ₦5,000 |
| Above ₦100 million to ₦500 million | ₦100,000 |
| Above ₦500 million to ₦1 billion | ₦150,000 |
| Above ₦1 billion | ₦200,000 |
Late returns attract a one-off penalty (₦1,000 for a small company, ₦2,000 for other private companies) plus a daily default amount (₦100 small, ₦200 other private), per the same CAC schedule; how these add up is covered in CAC late filing penalties.
Deadlines at NRS
According to PwC's Nigeria tax summary (reviewed May 2026), a company files its self-assessment income tax return within six months after its financial year end, or within 18 months of incorporation for a new company, whichever comes first; NRS may extend by up to two months. Late filing costs ₦100,000 for the first month and ₦50,000 for each month after. Filing now runs through NRS Rev360, explained in how to file a company income tax return on Rev360.
Worked example (illustrative)
Example: a private company incorporated on 1 March 2025, owned by two Nigerian siblings in Dublin and Atlanta, uses a 31 December year end. Its first tax return is due by the earlier of 30 June 2026 (six months after 31 December 2025) and 1 September 2026 (18 months after incorporation), so 30 June 2026. Its first CAC annual return falls 18 months after incorporation, around September 2026. If both siblings are directors, own all the shares and turnover is under ₦120 million, it can be a small company and skip the audit, but it still needs financial statements for NRS and CAC.
Working with an accountant from abroad
- Agree the year end in writing and diarise both deadlines
- Give the accountant read access to bank statements in every currency the company holds, plus sales and expense records
- Ask for draft statements at least a month before the earlier deadline, so directors abroad can review and sign
- Confirm who files at CAC and who files at NRS, and ask for the filing receipts
- Keep signed copies; banks, NIPC and lenders ask for them
Where Pryme fits
A Pryme Business Account holds NGN, USD, GBP and EUR with statements for each, which is what an accountant needs at year end. The Finance agent prepares reconciliations and reminders; a person approves, and actions are recorded. See also company tax filings when the owner is abroad.
This is general information, not tax or legal advice.
Questions people ask
Do I need audited accounts for my small Nigerian company?
Not if it meets the CAMA s.394 small-company test (turnover up to ₦120 million, net assets up to ₦60 million, no foreign or government members, directors holding 51%+). It still needs financial statements.
Can a director abroad sign the company's accounts?
Yes. Directors sign wherever they live; agree an electronic or courier route with your accountant before the deadline.
When is the first company tax return due in Nigeria?
Within six months after the first year end or 18 months after incorporation, whichever is earlier, per PwC's 2026 summary.
What happens if I file CAC annual returns late?
A one-off penalty plus a daily default amount under the CAC fee schedule, and ten years without returns is a ground for striking the company off (CAMA s.425(3)).
Sources
- Companies and Allied Matters Act 2020 (full text) · accessed Oct 2026
- PwC Nigeria: Key compliance under CAMA 2020 and CR 2021 · accessed Oct 2026
- Mondaq (Kalepron Attorneys): All you need to know about annual returns with CAC, 29 Jul 2024 · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate tax administration (reviewed 29 May 2026) · accessed Oct 2026
- CAC New Schedule of Fees (Gazette No. 92 Vol. 112, published 29 May 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.