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
Running Nigerian payroll from abroad means funding the naira account before payday, deducting PAYE and the employee's 8% pension, adding the employer's 10% pension and 1% NSITF, and remitting each on time: pension within seven working days of paying salaries, and PAYE to the state tax authority by the 10th of the next month to be safe. Keep payslips and approvals on record, and make sure no single person in Nigeria can both prepare and release the payment.
The monthly cycle
A dependable payroll is a calendar more than a calculation. For an owner in London, Houston or Toronto, a typical month runs like this:
- Around the 20th: the manager or accountant sends the payroll draft, with any joiners, leavers, overtime or loan deductions.
- You review and approve the draft and the total cash needed.
- You make sure the naira account holds enough to cover net pay, deductions and remittances, converting foreign currency in good time if needed.
- Payday: salaries are paid, ideally as one batch you approve.
- Within seven working days: pension remitted to each employee's pension fund custodian.
- By the 10th of the following month: PAYE paid to the relevant state tax authority.
- Payslips issued and the payroll file archived.
The deductions and employer costs
| Item | Rule (source) | Deadline |
|---|---|---|
| PAYE | Employer deducts income tax from pay (NTAA 2025 s.51); bands from ₦800,000 at 0% up to 25% above ₦50m (DLA Piper) | By the 10th to be safe; the 2025 Act runs penalties after the 21st |
| Pension | Employee at least 8%, employer at least 10% of monthly emoluments (ThisDay on PRA 2014); PenCom says the Act covers private employers with three or more staff | Within seven working days of paying salaries |
| NSITF | 1% of total monthly payroll under the Employees' Compensation Act (NSITF) | Monthly, via the NSITF portal |
| ITF | 1% of annual payroll for employers with five or more staff or ₦50m turnover (Mondaq, TNP) | Annual |
| Group life insurance | At least three times annual total emolument (ThisDay on PRA 2014) | Policy kept in force |
The National Housing Fund is another common payslip line; The Ledger explains it with NSITF and ITF in Nigeria's other payroll deductions. On penalties, DLA Piper's August 2026 FAQs list 40% of the amount for failing to deduct PAYE and 10% plus interest for failing to remit.
Worked example (illustration only)
Emeka earns a gross salary of ₦250,000 a month (₦3,000,000 a year). Ignoring rent relief and NHF for simplicity:
- Employee pension at 8%: ₦20,000 a month (₦240,000 a year), which is relieved from tax.
- Taxable income: ₦3,000,000 minus ₦240,000 = ₦2,760,000.
- PAYE: 0% on the first ₦800,000; 15% on the remaining ₦1,960,000 = ₦294,000 a year, or ₦24,500 a month.
- Net pay: ₦250,000 minus ₦20,000 minus ₦24,500 = ₦205,500.
- Employer adds pension at 10% (₦25,000) and NSITF at 1% (₦2,500): total monthly cost ₦277,500, before ITF and insurance.
The cash you need in the naira account by payday is therefore ₦277,500 for Emeka alone: ₦205,500 to him, ₦45,000 to his pension custodian, ₦24,500 to the state and ₦2,500 to NSITF. Check your own figures with your accountant; reliefs change the PAYE line.
Minimum wage and low earners
DLA Piper's August 2026 payroll FAQs give the national minimum wage as ₦70,000 a month and note that employees earning the minimum wage or less are exempt from income tax. Their payslips show no PAYE but still show pension where the Pension Reform Act applies. Check with your accountant how the minimum wage rules apply to your business and where each member of staff falls before the first payroll run.
Funding the account from abroad
The most common failure for owners abroad is timing, not tax. A conversion started on the day before payday can land late. Decide a fixed funding date, for example five working days before payday, and keep a buffer of one month's payroll in naira if the business can afford it. If revenue is in another currency, our guide to cash flow forecasting with a volatile naira shows how to plan conversions.
Approvals and fraud controls
Payroll is where small businesses run from abroad most often lose money: a staff member who left but stayed on the list, a salary changed without approval, or an account number swapped for someone else's. Simple controls help:
- Compare each month's payroll with last month's and ask for a reason for every change.
- Approve the batch yourself, or require two approvers, rather than letting the preparer release it.
- Check new bank details by calling the employee, not by email.
- Ask for evidence of remittance (pension schedule, PAYE receipt) every month.
See preventing staff fraud in a business run from abroad for more.
Payslips and records
The Labour Act section 7 requires a written statement of terms within three months of starting, and section 75 requires wage records to be kept for three years. The Nigeria Tax Administration Act section 14 requires an employer's annual return of emoluments by 31 January, and section 31 requires books to be kept for at least six years. A payslip showing gross pay, each deduction and net pay is the simplest record for both you and the employee.
Where Pryme fits
A Pryme Business account holds naira alongside dollars, pounds and euros, so payroll can be funded with Swap when you choose, with the rate and fee shown before you approve. Payroll and the Finance agent prepare the run; a person approves above a set ceiling and actions are recorded.
Questions people ask
When must PAYE be paid in Nigeria?
PwC's summary says by the 10th of the following month; the 2025 Administration Act runs penalties after the 21st. Paying by the 10th is the safer habit; confirm with the state tax authority.
What are the pension rates in Nigeria?
At least 8% from the employee and 10% from the employer of monthly emoluments, remitted within seven working days of paying salaries.
Do I need to pay pension for two employees?
PenCom says the Pension Reform Act covers private employers with three or more employees; smaller employers may join voluntarily.
Can I approve Nigerian payroll from abroad?
Yes. Many owners approve the monthly batch online and require two approvers so the preparer cannot release it alone.
Sources
- DLA Piper Africa: FAQs on payroll taxes and employer liability in Nigeria (28 Aug 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria individual tax administration (29 May 2026) · accessed Oct 2026
- PenCom: Framework for Micro Pension Plan (coverage) · accessed Oct 2026
- NSITF: Compensation and services · accessed Oct 2026
- ThisDay: CPS, what you should know about employee's rights (20 Mar 2023) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · 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.