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
A Nigerian business owner who trades in their own name or as a registered business name files an annual personal income tax self-assessment return (commonly called Form A) with the state IRS where they live; the individual deadline is reported as 31 March. You compute profit from the business, add other income, subtract allowable reliefs such as rent relief (20% of rent, capped at ₦500,000), pension and NHF, and apply the 0% to 25% bands.
Who files and where
Section 13 of the Nigeria Tax Administration Act 2025 (NTAA) requires "every taxable person whether or not liable to pay tax" to file a return of income each year, without waiting for a notice. For individuals, sole traders and owners of business names, that return goes to the internal revenue service of the state where you are resident, not to the Nigeria Revenue Service. The form is commonly known as Form A; check your state IRS portal for the current version (in Lagos, the LIRS eTax portal).
If you run a limited company, the company files its own return with the NRS, and you file a personal return for your salary, dividends and other income.
The deadline
BusinessDay (March 2026) reported that individual annual returns are due by 31 March. PwC's Nigeria summary (reviewed May 2026) puts it as within 90 days of the year end, which comes to the same date for a calendar year. Late filing costs ₦100,000 for the first month and ₦50,000 for each further month under NTAA s.101. Tax due is paid by the filing date, in one sum or in instalments with the last on or before that date (s.49(1)).
What goes in the return
Section 13(2) lists the contents:
- a completed self-assessment form;
- income from every source for the year;
- personal reliefs and the tax computation;
- for trade or business income, audited financial statements or "a statement of accounts attested to by the taxpayer"; and
- evidence of payment of the tax due.
The attested statement of accounts option matters for small business owners: you do not need an audit, but you do need a profit and loss summary you can stand behind.
Step by step: computing assessable profit
- Total your business sales for the year from invoices, receipts and bank statements.
- Subtract expenses incurred "wholly and exclusively" in earning that income (PwC's statement of the rule): stock, rent of business premises, staff wages, repairs, business interest, transport, data, adverts, bad debts.
- Leave out personal spending and capital purchases; capital items are dealt with through capital allowances.
- The result is your business profit. Add any other income: salary, rent, interest not taxed at source as final.
- Subtract personal reliefs.
- Apply the bands to what is left, then subtract any withholding tax credits you hold.
Reliefs you can claim
PwC lists the main reliefs for individuals under the Nigeria Tax Act 2025:
| Relief | Rule |
|---|---|
| Rent relief | Lower of ₦500,000 or 20% of annual rent paid on your home; declare rent accurately |
| Pension | Contributions to the national pension scheme |
| National Housing Fund | NHF contributions |
| Health insurance | National Health Insurance Scheme contributions |
| Life insurance | Premiums actually paid for yourself and spouse |
| Mortgage interest | Interest on a loan to build an owner-occupied home |
Business owners can join a pension scheme through the micro pension arrangements PenCom runs for the self-employed. The old consolidated relief allowance no longer exists; the 0% first band of ₦800,000 does that work now.
Worked example
- Sales
- ₦18,000,000
- Allowable business expenses
- ₦12,500,000
- Business profit
- ₦5,500,000
- Rent relief: 20% of ₦1,200,000 (below the ₦500,000 cap)
- ₦240,000
- Taxable income
- ₦5,260,000
- First ₦800,000 at 0%
- ₦0
- Next ₦2,200,000 at 15%
- ₦330,000
- Remaining ₦2,260,000 at 18%
- ₦406,800
- Tax for the year
- ₦736,800
- Less WHT credits from corporate clients
- ₦150,000
- Balance payable by 31 March
- ₦586,800
The bands are those of the Nigeria Tax Act 2025 (DLA Piper Africa, August 2026).
What to check first
- Your Tax ID: for individuals the NIN serves as one under the 2025 framework.
- The correct state: the one you lived in for the year, not where your customers are.
- Your withholding tax receipts: collect them from clients before you file.
- Your records: kept for six years after the year of assessment (NTAA s.31).
- If you employ staff, the separate employer return of emoluments is due by 31 January (s.14).
If the state IRS later disagrees with your figures, you can object within 30 days of an assessment; see how to object. Business-name owners should also read tax for business name owners.
If you also have a salary
Many business owners also hold a job. Your employer deducts PAYE from your salary, but section 14(3) of the NTAA says an employee must still file an annual return of income from all sources. Include the salary and the PAYE already deducted, add the business profit, and the return computes the total tax; the PAYE counts towards it. Because the business profit sits on top of your salary, it is usually taxed in your higher bands.
Where Pryme fits
Running the business through a Pryme Business Account gives you a single statement to build the year's sales and expenses from, and the Finance agent can draft a profit summary for you to check and attest. This article is information, not tax advice.
Questions people ask
When is the deadline for personal income tax returns in Nigeria?
31 March for the previous year, as reported by BusinessDay; PwC describes it as within 90 days of the year end.
What is Form A in Nigeria?
The common name for the annual personal income tax self-assessment return filed with a state IRS. Use the current form on your state's portal.
Do I need audited accounts as a sole trader?
No. NTAA s.13 allows a statement of accounts attested by the taxpayer for trade or business income.
What reliefs can a business owner claim in Nigeria?
Rent relief (20% of rent, up to ₦500,000), pension, NHF, NHIS, life insurance premiums and mortgage interest on an owner-occupied home, per PwC.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- BusinessDay: Eight common tax filing errors and their penalties (31 Mar 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual tax administration (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual deductions (reviewed 29 May 2026) · accessed Oct 2026
- DLA Piper Africa: FAQs on payroll taxes and employer liability (28 Aug 2026) · accessed Oct 2026
- PenCom: Framework for Micro Pension Plan · 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.