AI agents for business finance: what they can and can't do
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The short answer
A Nigerian company invoices US clients in US dollars with its legal name, CAC number, address, payment details and clear terms. Many US clients will ask for an IRS Form W-8BEN-E, which the IRS says foreign entities use to document their status, and they will pay by wire or by ACH to a US-based account, so how you receive USD decides how quickly and cheaply you are paid.
Nigerian software houses, design studios, outsourcing firms and exporters increasingly sell to US companies. The work is often the easy part. Getting onboarded as a vendor, issuing an invoice the client's accounts payable team accepts and receiving the dollars without delay is where many deals slow down. This guide covers each step.
What a US client expects on the invoice
- Your company's legal name exactly as registered with CAC, and the RC number.
- Your registered address in Nigeria and a contact email.
- The client's legal name and billing address, and their purchase order (PO) number if they use POs.
- A unique invoice number, issue date and due date.
- A description of the work or goods, quantities and the price in USD.
- Payment terms, such as net 30, and any late-payment term agreed in the contract.
- Payment instructions: account name, bank name, account number and routing or SWIFT details.
Large US companies often pay only against an approved PO. Ask at the start whether one is needed, and put its number on every invoice; an invoice without it may simply sit in a queue.
Vendor onboarding and Form W-8BEN-E
When a US company pays a foreign business, its finance team usually asks for a tax form to show you are not a US person. The IRS says Form W-8BEN-E is used by foreign entities to document their status for chapter 3 and chapter 4 purposes. It is given to the client that asks for it, not filed with the IRS by you. A Nigerian individual freelancer would use the individual version instead.
Some forms ask about treaty benefits. The IRS list of US income tax treaties does not include Nigeria, so there is no treaty rate to claim. Whether US withholding applies at all depends on the type of payment and where the work is done; payments for services performed entirely in Nigeria are generally treated differently from US-source income. Ask a US tax adviser if a client proposes to withhold.
How you receive the dollars
| Route | How the client pays | Things to know |
|---|---|---|
| Nigerian domiciliary account | International wire (SWIFT) in USD | The client's bank may charge its outgoing wire fee; intermediary banks may deduct fees in transit |
| US-based USD account details | ACH or domestic wire | Familiar to US accounts payable teams and often cheaper for them |
| Payment link or card | Card or online checkout | Processor fees usually come out of what you receive |
If you export goods rather than services, the CBN Foreign Exchange Manual 2026, effective 1 June 2026, as summarised by Pavestones Legal on Mondaq, requires non-oil export proceeds to be repatriated within 90 days and credited to the exporter's domiciliary account. Services contracts should also state the currency and the account clearly, so the client does not convert to naira on your behalf at its bank's rate.
Worked example only: you invoice $5,000. If the client sends an international wire and two intermediary banks each deduct $20, $4,960 arrives. On a domestic ACH to US account details, the full $5,000 may arrive, depending on your provider's terms. Over 24 invoices a year, the difference of $40 an invoice is $960.
Common reasons US payments stall
- Name mismatch
- The beneficiary name on your instructions differs from the account name at the bank, so the payment is returned or queried
- Missing PO
- The invoice cannot be matched to an approved purchase order
- Unverified bank change
- You changed payment details by email, and the client's controls block the payment until it is confirmed
- Incomplete vendor file
- The W-8BEN-E or vendor form is unsigned or out of date
- Wrong currency
- The client's bank converted dollars to naira because the instructions pointed to a naira account
Most of these are fixed by sending one clean vendor pack at the start: certificate of incorporation, W-8BEN-E, signed payment instructions on letterhead and a named finance contact. Send updates through the same channel, and expect the client to call to confirm any change of bank details.
Tax and records in Nigeria
Dollar income is still income of the Nigerian company. Record each invoice and receipt at the rate you use consistently in your books, and keep the contract, invoice and bank credit together. Mypryme's guides to invoicing a foreign client from Nigeria and VAT on exported services cover the Nigerian tax side.
Steps to set up
- Agree currency, payment terms and the paying entity in the contract.
- Complete the client's vendor form and W-8BEN-E, signed by an authorised officer.
- Give payment instructions on company letterhead and confirm them by phone to reduce fraud risk.
- Issue invoices with PO numbers and send them to the accounts payable address, not only your contact.
- Reconcile each payment against its invoice the day it lands.
If you set up a US entity instead, see foreign qualification for a Nigerian company's US branch.
Where Pryme fits
A Pryme Business account holds USD with local account details as well as NGN, so a US client can pay in dollars and the money stays in dollars until you choose to convert. The Sales agent prepares invoices and reminders for approval. See invoicing and business multicurrency.
Questions people ask
Does a Nigerian company need a W-8BEN-E for US clients?
Many US clients ask for one during vendor onboarding. The IRS says foreign entities use it to document their status; you give it to the client, not the IRS.
Can I claim a US tax treaty rate as a Nigerian company?
No treaty applies. The IRS treaty list does not include Nigeria.
Should I invoice US clients in naira or dollars?
Most US clients pay in dollars. Invoicing in USD avoids the client's bank converting the payment at its own rate.
Why do I receive less than I invoiced on a wire?
The client's bank and intermediary banks can deduct fees. Agree in the contract who bears them, or offer local USD details.
Sources
- IRS: About Form W-8BEN-E (reviewed 30 Mar 2026) · accessed Oct 2026
- IRS: United States income tax treaties A to Z (reviewed 3 Jan 2026) · accessed Oct 2026
- Mondaq (Stren & Blan): CBN suspension of time extension for repatriation of export proceeds, 7 Feb 2025 · accessed Oct 2026
- Mondaq (Pavestones Legal): Key regulatory update, the CBN Foreign Exchange Manual 2026 (24 Jun 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.