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
Price in US dollars, state whether the figure is gross or net of Nigerian deductions, and build in the costs that sit between the startup's account and yours. A Nigerian client may deduct withholding tax, which PwC lists at 10% for non-residents on professional and consultancy fees, and VAT may apply on top. A startup paying from dollar runway values predictable monthly costs, so fixed scopes and retainers often sell better than open hourly billing.
Many Nigerian startups that hire US-based designers, engineers and marketers raised their money in dollars, often through a US or Delaware parent, and hold some of it in USD. That changes the pricing conversation. They are not converting naira at a painful rate to pay you; they are spending runway they count in months. Your rate competes with every other way they can spend that month, including hiring in Lagos. This guide covers how to set a dollar price that holds up, and the deductions to plan for.
Start from what the startup is buying
A seed-stage fintech with eighteen months of runway thinks in burn rate. It will often pay a fair dollar rate for work that moves a launch or a fundraise forward, and resist open-ended hourly billing it cannot forecast. Three pricing shapes tend to work:
- Fixed-scope projects: a defined deliverable, a price, and two or three milestones. Easy for a founder to approve against a budget line.
- Monthly retainers: a set number of hours or a defined capacity each month, invoiced in advance. Predictable for both sides; see retainer agreements with Nigerian agencies.
- Day rates for sprints: useful for workshops and audits with clear start and end dates.
Whatever the shape, quote in USD. A naira quote moves your income with the exchange rate, and a startup holding dollars gains nothing from it. For the wider currency question, see USD rates against naira budgets.
The deductions between their account and yours
Nigerian withholding tax
If the Nigerian company pays you directly, it may deduct withholding tax. PwC's Nigeria withholding tax summary (reviewed 29 May 2026) lists commission, consultancy, technical, management and professional fees at 5% for residents and 10% for non-residents, and describes the non-resident rate on those services as a final tax for companies. Rules may shift under the 2025 tax laws, so ask the client what they will deduct and get the receipt.
VAT
Under the Nigeria Tax Act 2025, Mondaq's May 2026 analysis says services consumed in Nigeria are taxable whether rendered inside or outside Nigeria, and the customer may account for VAT. VAT is added to the price rather than taken from it, but it affects the total the startup budgets. Settle who handles it before the first invoice; see responding to a VAT request.
Bank and receiving charges
A Swift wire may lose fees to intermediaries and the receiving bank. Wise's US pricing page, for example, lists 6.11 USD per incoming USD wire or Swift payment. Small per-payment fees matter more on small monthly invoices.
A worked example: grossing up for withholding tax
Example only. You want to receive $5,000 for a product sprint. If the client will deduct 10% withholding tax, invoicing $5,000 leaves you $4,500. To net $5,000, invoice $5,000 / 0.9 = $5,555.56. Withholding of 10% on that is $555.56, leaving $5,000.
| Invoice $5,000 | Invoice grossed up | |
|---|---|---|
| Invoice amount | $5,000.00 | $5,555.56 |
| 10% withholding tax | $500.00 | $555.56 |
| Paid to you | $4,500.00 | $5,000.00 |
| Example receiving fee | $6.11 | $6.11 |
| Lands in your account | $4,493.89 | $4,993.89 |
Whether you gross up is a commercial choice. Some startups accept it; others would rather you quote a figure that already allows for it. What matters is that the contract says "fees are exclusive of any Nigerian taxes the client is required to deduct or add", or the opposite, so there is no argument later. On the US side, your Schedule C income is the gross fee; the withholding may be a foreign tax you can look at crediting, covered in claiming Nigerian WHT as a foreign tax credit.
Terms that protect the price
- Invoice in USD and name the paying entity: Lagos company or US parent.
- Deposit or first month in advance for new clients.
- Payment due within a fixed number of days, with a clause on late payment.
- Who pays bank charges on both ends.
- What happens to the price if scope grows: a change-request rate in the contract.
The Nigeria-side view of the same choice is in should Nigerian freelancers price in dollars or naira.
Review the rate each year in dollars, not against the naira. A startup that has raised a new round can usually absorb an increase; one approaching the end of its runway may ask for a pause instead, which is easier to handle if the contract has a notice period.
Where Pryme fits
A Pryme Business Account holds USD and NGN with local details for each, so a startup can pay you from its dollar or naira balance and the money stays in that currency until you choose to convert. Invoicing can show fees as gross or net of a tax line per client, and the Finance agent prepares a reconciliation of what each invoice was and what landed, for you to approve.
Questions people ask
Should I charge Nigerian startups in dollars or naira?
Dollars, in most cases. Startups that raised in dollars often hold USD, and a dollar price keeps your income stable.
How do I make sure Nigerian withholding tax does not cut my fee?
Either gross up the invoice, for example dividing by 0.9 where 10% is deducted, or state that fees are exclusive of Nigerian taxes the client must deduct.
What withholding tax do Nigerian companies deduct from foreign consultants?
PwC's May 2026 summary lists 10% for non-residents on consultancy, technical, management and professional fees. Ask the client what they will deduct.
Are retainers better than hourly for Nigerian startups?
Often, because founders budget against monthly runway. A fixed monthly capacity invoiced in advance is easier for them to approve.
Sources
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- Mondaq: Examination of the VAT provisions under the Nigeria Tax Act 2025 (28 May 2026) · accessed Oct 2026
- Wise: Pricing, receiving money (US) · 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.