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
Under Nigeria's Labour Act, wages are due at the end of each period the contract covers, so a worker hired by the day is owed at the end of the day, and pay must be in legal tender. Paying by transfer into the worker's own account is the cleanest method, with a simple record of days worked, rate and amount paid for each person.
What the Labour Act says
The Labour Act sets some basic rules that apply to how and when wages are paid. Three are most relevant to casual and daily-paid staff:
- Legal tender. Section 1 requires wages to be payable in legal tender. Payment by cheque or postal order needs the worker's prior written consent.
- When wages are due. Section 15 says wages become due at the end of each period for which the contract is expressed, whether daily, weekly or another period. Where the period is longer than a month, wages must be paid at intervals of no more than one month.
- Deductions. Section 5 bars deductions except those the law allows, and caps total deductions in a month at one-third of the worker's wages for that month.
So a labourer hired by the day on a building site is owed at the end of that day, and a weekly-paid packer at the end of the week. Agreeing 'we will pay everyone at month-end' with daily-hired workers sits badly with section 15.
Minimum wage
The National Minimum Wage (Amendment) Act 2024 set the national minimum wage at ₦70,000 a month. The Act exempts some groups, including establishments with fewer than 25 workers, part-time workers paid by commission or piece rate, and seasonal workers. Even where the Act does not apply, many employers use it as a reference point for full-time pay. The rate is due for review in 2027.
Cash or transfer
| Cash | Transfer to worker's own account | |
|---|---|---|
| Record | Paper sign-off, easily disputed | Bank record for every payment |
| Risk | Theft, miscounting, supervisor skimming | Wrong account number if not checked |
| Getting the cash | Weekly withdrawal limits apply | No withdrawal needed |
| Speed on site | Fast if cash is already there | Fast if details are collected on day one |
Cash is harder to manage than it used to be. From 1 January 2026, the CBN's revised cash policy limits corporate withdrawals to ₦5 million a week across all channels, with a 5% charge on amounts above that. A contractor paying sixty labourers in cash every week can hit that limit quickly.
Collect details on day one
On the first day, take each worker's name, phone number and the bank account in their own name. Do not pay into a supervisor's or gang leader's account 'to share'. That is where wages go missing and where disputes start. If a worker does not have an account, many can open a basic one with limited documents; see KYC tiers in Nigeria.
A simple daily pay sheet
Keep one sheet per site or team per pay period, signed off by the supervisor and checked by someone else before payment.
- Worker name and account details (from your master list, not retyped each time).
- Days or hours worked, with the date.
- Agreed rate.
- Gross pay.
- Lawful deductions, if any, with the reason.
- Net pay and payment reference.
Worked example
Example: a builder hires 12 labourers at ₦8,000 a day and 3 masons at ₦15,000 a day for a five-day week. Gross pay is 12 × 5 × ₦8,000 = ₦480,000 plus 3 × 5 × ₦15,000 = ₦225,000, a total of ₦705,000. The supervisor signs the sheet, the owner checks headcount against the site log, and the payments go out as one batch on Friday afternoon, each to the worker's own account. One labourer worked only three days and is paid ₦24,000, not ₦40,000; the sheet shows why.
Advances, disputes and absent workers
Casual teams generate a steady stream of small exceptions. Decide in advance how you will handle them, and write the rule on the pay sheet template so supervisors apply it the same way every week.
- Advances. If you lend a worker money during the week, record it with the date and the worker's signature, and recover it within the one-third limit on monthly deductions.
- Disputed days. Use a daily sign-in sheet or site log as the source of truth. When a worker disputes a short payment, show them the log rather than relying on the supervisor's memory.
- Paying someone else on a worker's behalf. Avoid it. If a worker is ill and asks you to pay a relative, get the request in writing from the worker and pay into an account in the worker's own name where possible.
- Late or failed transfers. Keep the reference for every payment so you can show the worker when it was sent, and check with your account provider if a transfer has not arrived.
Tax and when casual becomes employee
Long-running 'casual' arrangements can turn into employment in practice, with PAYE, pension and other obligations. If the same people work for you full-time month after month, treat them as staff and read PAYE tax bands for 2026 and running payroll in Nigeria. Take advice if you are unsure where the line falls for your workers.
Where Pryme fits
With a Pryme Business Account you can pay a team in one run using bulk payouts, and regular staff through payroll. The Finance agent can prepare the run from your pay sheet; a person approves anything above your set ceiling, and every payment is recorded against the worker's name.
Questions people ask
When should daily workers be paid in Nigeria?
Section 15 of the Labour Act says wages are due at the end of each period the contract covers, so daily-paid workers are owed at the end of each day unless a different period was agreed.
Can I pay casual workers in cash?
Yes, cash is legal tender. But it leaves a weaker record, and from January 2026 the CBN limits corporate cash withdrawals to ₦5 million a week, with a 5% charge above that.
Does the ₦70,000 minimum wage apply to casual workers?
The 2024 Act exempts some groups, including employers with fewer than 25 workers, piece-rate and commission-only part-timers, and seasonal workers. Check whether your workforce falls within it.
Can I deduct money from a worker's pay for damage?
Only deductions the law allows. The Labour Act caps total deductions at one-third of the worker's wages in a month. Take advice before deducting for losses.
Sources
- Labour Act, Cap. L1, Laws of the Federation of Nigeria · accessed Oct 2026
- Mondaq: The National Minimum Wage (Amendment) Act 2024, key updates for employers · accessed Oct 2026
- Nairametrics: CBN revises cash withdrawal rules effective January 2026 · accessed Oct 2026
- Channels Television: CBN revises cash withdrawal rules effective January 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.