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 bank can usually apply money in your accounts with it to a loan you owe it that is due and unpaid, under the banker's right of set-off and, more importantly, under the set-off clause most Nigerian loan agreements contain. The clause normally covers accounts in your own name at the same bank, not money held for someone else or in other banks. If a bank has debited your savings, ask for the clause it relied on and a statement of how the money was applied.
What set-off means
Set-off is the principle that if you owe a bank money and the bank also holds money of yours, the two can be netted against each other. When your loan is overdue, the bank does not have to sue you to recover from a savings or current account you hold with it; it can apply the balance in that account to the loan. To the customer it looks like money vanishing from savings. To the bank it is collecting a debt from funds it already holds.
There are two sources for this power. The first is the general law on banker and customer, under which a bank can, in defined circumstances, combine accounts a customer holds with it. The second, and in practice the one that matters, is the express set-off clause in your loan agreement or account terms, which is usually wider than the general law.
What a typical clause says
Set-off clauses vary, but most contain some version of the following:
- The bank may, without notice, apply any credit balance on any of your accounts with it towards any amount you owe it that is due.
- This may include fixed deposits, savings, domiciliary and current accounts.
- The bank may convert foreign currency balances at its rate to cover a naira debt.
- The bank may place a hold (lien) on accounts while a debt is outstanding.
Read the words 'any account' and 'without notice' closely. They are why the debit can arrive without warning. If you are offered a loan with a separate lien on a fixed deposit, that is a related but more specific arrangement.
Limits on set-off
| Usually within set-off | Usually outside set-off |
|---|---|
| Accounts in your sole name at the same bank | Accounts at other banks (that needs a separate mandate such as GSI) |
| Debts that are due and unpaid | Instalments not yet due, unless the loan has been accelerated |
| Your personal debt to the bank | Money held for others, such as client or trust accounts, where the bank knows of the trust |
| Debts and accounts held in the same capacity | A personal debt set against a company's account (they are different legal persons) |
Joint accounts and business accounts raise their own questions. A company's account is not the director's personal money, and a joint account may belong partly to someone who is not the borrower. If your bank has applied money from either to a personal loan, ask for its legal basis in writing.
Set-off at other banks is a different matter. Recovery across banks is done through a Global Standing Instruction, which you must have consented to; see GSI explained and how to know if you signed a GSI mandate.
Worked example: what was taken and what is left
Example only. Your loan instalment of ₦45,000 was due on the 1st and not paid. A penalty of ₦2,000 has been added, so ₦47,000 is overdue. You have ₦120,000 in a savings account at the same bank. Using the set-off clause, the bank debits ₦47,000. Your savings now show ₦120,000 − ₦47,000 = ₦73,000, and the overdue amount on the loan should be zero. If the bank debited more than the overdue amount, say ₦80,000, ask whether it accelerated the loan and on what basis; read acceleration clauses.
Steps if your savings were debited
- Ask the bank in writing which clause it relied on and for a statement showing how the money was applied.
- Check whether the amount matches what was actually due, including any penalties. A loan statement helps.
- If the money was not yours to set off (trust money, a company account for a personal debt, a joint account), say so in writing with evidence.
- If you disagree with the bank's answer, use its complaints unit and then escalate to the CBN; see how to complain to the CBN.
Loan apps and set-off
A loan app does not hold your savings, so it has no set-off against your bank account. Recovery is through card or debit mandates you gave, or a GSI. The FCCPC's 2025 digital lending regulations require loan agreements to specify default recovery methods (Regulation 13(1)(h)); read that section of any app's terms. The FCCPC resumed implementing these regulations on 20 July 2026.
If you have savings you want to protect while a loan is outstanding, the honest answer is to keep up the repayments or agree a new schedule in writing. Moving savings out of the bank to avoid set-off after a default can breach your agreement and does not reduce what you owe.
Where Pryme fits
Loans on Spaces are lent by Solid Allianze Microfinance Bank, and the agreement you accept sets out the amount, cost, repayment date and how repayment is collected. Read it before accepting. See what to read before accepting an offer.
Questions people ask
Can my bank take money from my savings to pay my loan?
Usually yes, if the loan is due and unpaid and your agreement contains a set-off clause. It normally applies to accounts in your name at the same bank.
Can a bank take money from my account in another bank?
Not through set-off. Cross-bank recovery uses a Global Standing Instruction you consented to when taking the loan.
Can the bank debit my business account for my personal loan?
A company is a separate legal person, so its account is generally not available for a director's personal debt. Ask the bank for its legal basis in writing.
Must the bank tell me before using set-off?
Many clauses allow it without notice. You can still demand a written explanation and a statement afterwards.
Sources
- FCCPC: Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 (made 21 July 2025) · accessed Oct 2026
- FCCPC: FCCPC resumes digital lending regulation (20 July 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.