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
When a company gives a bank security over its assets, the charge must be registered with the Corporate Affairs Commission within 90 days of its creation, or it is void against a liquidator and other creditors (CAMA 2020, section 222). Under the CAC fee schedule gazetted on 29 May 2025, registration costs ₦25,000 or 0.35% of the amount secured, whichever is higher. After repayment, a memorandum of satisfaction (₦25,000) clears it from the register.
What a charge is and why the bank files it
A charge is security a company gives over its property for a debt: a fixed charge over a named asset (a building, a vehicle, equipment) or a floating charge over changing assets such as stock and receivables. The bank lends; the company promises that, if it defaults, the bank can look to those assets first.
Registration is what protects the bank. Section 222 of the Companies and Allied Matters Act 2020 says a charge is void against the liquidator and any creditor unless its particulars, with the instrument creating it, reach CAC within 90 days after the date it was created. If the charge becomes void, the money secured becomes immediately payable. Registration also gives everyone constructive notice of it, which is why a careful lender will not release funds on a large facility until the charge is filed.
Who files, and the 90-day clock
- Duty sits with the company. Section 224 makes it the company's duty to send the particulars, but any interested person, in practice the lender, may file instead.
- Fees can be recovered. If the lender files, it can recover the fees it paid from the company (section 224(2)). Expect the facility letter to say so.
- Penalty for default. A company that fails to register, where nobody else has, and each officer in default commit an offence.
- Missed the deadline? Section 230 lets the court extend the time where the failure was accidental or does not prejudice creditors or shareholders. That costs far more than filing on time.
What it costs: the 2025 fee
The CAC fee schedule gazetted on 29 May 2025 sets the same charge fee for every company type: ₦25,000 or 0.35% of the amount secured, whichever is higher. The cross-over point is about ₦7.14 million (₦25,000 divided by 0.35%). Below that you pay the flat ₦25,000; above it the percentage applies.
| Amount secured (example) | 0.35% of amount | CAC fee payable |
|---|---|---|
| ₦5,000,000 | ₦17,500 | ₦25,000 (flat fee is higher) |
| ₦10,000,000 | ₦35,000 | ₦35,000 |
| ₦50,000,000 | ₦175,000 | ₦175,000 |
Other items in the same schedule that often appear in loan paperwork: deed of hypothecation ₦25,000, deed of negative pledge ₦25,000, memorandum of satisfaction or deed of release ₦25,000, and a historical search report on particulars of charges ₦10,000 (₦20,000 for a public company). Stamp duty on the security documents, legal fees and any land registry fees for mortgages are separate and are not set by CAC.
Worked example of total CAC cost
Example only: a private company takes a ₦20 million equipment loan secured by a fixed charge. CAC registration is 0.35% × ₦20,000,000 = ₦70,000. When the loan is repaid, the memorandum of satisfaction is ₦25,000. Total CAC fees over the life of the loan: ₦95,000, before stamp duty and legal costs. Ask the bank whether it expects you to pay these directly or will add them to the facility.
Steps when you take the loan
- Read the facility letter for the security required and who files and pays.
- Board resolution approving the borrowing and the security, signed per your articles.
- Execute the charge or debenture and have it stamped as the lender's solicitors direct.
- File the particulars and the instrument on the CAC portal within 90 days of creation and pay the fee.
- Keep CAC's registration certificate. Section 223 says it is prima facie evidence that registration was done properly.
- Enter the charge in the company's own register of charges at its registered office (section 216).
Getting the charge released after repayment
Repaying the loan does not clear the register on its own. Section 229 allows a memorandum of satisfaction to be entered where the debt has been paid or the property released. The usual sequence:
- Ask the bank for a letter confirming full repayment and a signed deed of release or discharge.
- File the memorandum of satisfaction with CAC with that evidence and pay the ₦25,000 fee (May 2025 schedule).
- Request a status report (₦5,000 for a private company) to confirm the charge now shows as satisfied before you approach a new lender.
An unreleased charge is one of the most common reasons a later loan or sale stalls, because the next lender sees the old charge on its search. It is also something CAC's status report will show.
Checking for charges before you lend or buy
The register works both ways. Before you buy a company's assets, buy its shares or lend to it, a search of its charges tells you who already has first claim. The May 2025 schedule prices a historical search report on charges, debentures and memoranda of satisfaction at ₦10,000 for a private company. A charge still showing after the seller says the loan is repaid is a reason to ask for the release paperwork before you pay.
Where Pryme fits
Pryme does not take charges over company assets. A Pryme Business Account gives a company one place for NGN, USD, GBP and EUR, and its Finance agent can prepare a repayment schedule so the release paperwork is not forgotten; a person approves above a set ceiling. For borrowing basics, see APR vs flat fee.
Questions people ask
How many days to register a charge at CAC?
Within 90 days of the charge being created, under section 222 of CAMA 2020. Late registration needs a court order extending time.
How much is CAC charge registration fee?
Under the fee schedule gazetted on 29 May 2025, ₦25,000 or 0.35% of the amount secured, whichever is higher.
Who pays for registration of charge, the bank or the company?
The duty is the company's, but the lender may file and then recover the fees from the company. Your facility letter usually states this.
How do I remove a charge from CAC after paying off a loan?
Get a release letter or deed from the lender, then file a memorandum of satisfaction with CAC (₦25,000 under the May 2025 schedule) and confirm with a status report.
Sources
- Companies and Allied Matters Act 2020, full text (2020) · accessed Oct 2026
- CAC New Schedule of Fees, Official Gazette No. 92 Vol. 112 (29 May 2025) · accessed Oct 2026
- National Collateral Registry: How To · 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.