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The short answer
Nigerian law sets no standard per diem for private employers, so you write your own policy: who can approve a trip, what is booked by the company, a fixed daily allowance or reimbursement against receipts for meals and local transport, and a deadline for claims. Keep the receipts, because business costs are deductible only if wholly and exclusively incurred for the business, and allowances you pay belong in the employer's annual return of emoluments.
Staff in a Nigerian business travel more than owners abroad often expect: a sales rep visiting distributors in Onitsha, an engineer installing equipment in Kano, a manager meeting a client in Abuja. Without written rules, every trip becomes a negotiation by WhatsApp, receipts arrive weeks late or not at all, and you cannot tell a reasonable trip from an expensive one. A one-page policy fixes most of this.
Decide what is booked and what is claimed
The cleanest policies separate costs the company books directly from costs the traveller pays and claims:
| Cost | Usually | Why |
|---|---|---|
| Flights and long-distance road transport | Booked and paid by the company | Price control, no cash advance |
| Hotels | Booked by the company, or a nightly cap | Avoids inflated invoices |
| Meals and incidentals | Daily allowance or receipts | Small, frequent amounts |
| Local transport (ride-hailing, taxis) | Receipts or app trip records | Easy to evidence |
| Client entertainment | Approved in advance, receipts required | Higher risk of abuse |
Per diem or reimbursement?
A per diem is a fixed amount per day away, paid whatever the traveller actually spends. It is simple and avoids chasing receipts for every meal. A reimbursement repays actual costs against receipts. It is more accurate but more work. Many businesses use a per diem for meals and incidentals and reimbursement for everything else.
There is no statutory per diem figure for private employers in Nigeria; the amount is your decision. Set it by city, because costs in Lagos, Abuja and Port Harcourt differ from smaller towns, and review it at least once a year. Write it as a naira amount and the date it was set.
Tax and records
Two tax points shape the policy. First, PwC's Nigeria tax summary states that expenses are deductible for company income tax if they are wholly and exclusively incurred for the business. A trip with a business purpose, approved in advance and supported by receipts, is much easier to defend than a lump sum with no paperwork.
Second, the employer's annual return under section 14 of the Nigeria Tax Administration Act 2025 reports each employee's gross emoluments including allowances and benefits in kind. A fixed travel allowance paid every month, whether or not the person travels, looks like pay rather than expense reimbursement. Whether a particular allowance falls into PAYE is a question for your tax adviser; the policy should make the distinction clear by linking per diems to actual days away.
The same Act requires books and records to be kept for at least six years after the year of assessment. Keep trip approvals, receipts and claims together for that long.
Receipt rules that work in Nigeria
- Accept ride-hailing app records, airline e-tickets and hotel invoices issued in the company's name.
- For small vendors without printed receipts, accept a signed handwritten receipt with the vendor's name, phone number, date and amount, up to a low limit.
- Claims must be submitted within a fixed time after return, for example seven days; late claims need a manager's approval.
- No receipt and no explanation means no reimbursement, applied the same way to everyone.
- Advances, if any, are settled against the claim, with the balance returned or paid within the month.
For the claim process itself, see expense claims and receipts for Nigerian staff and corporate card controls for a Nigerian manager.
Cash advances need their own rule. If a traveller needs money before the trip, pay a fixed advance against an approved trip request, and settle it within a set number of days after return: the claim is netted against the advance, and any unspent balance is returned by transfer, not in cash. Keep a running list of open advances and do not issue a new one while an earlier one is unsettled.
Approval from abroad
Approve trips, not receipts. A short trip request (purpose, dates, destination, estimated cost) approved in advance lets the manager in Nigeria handle the claims within that approval. You review a monthly summary of trips and spend by person, looking for repeated trips with thin purposes or claims that always land at the limit. If a trip changes after approval (an extra night, a second city), the traveller asks again before spending, not after. The policy should also say who travels in what class, whether staff may claim for a companion, and what happens to air miles or hotel points earned on company bookings, so these questions are settled once rather than argued trip by trip.
Where Pryme fits
In a Pryme Business Account, the Chief of Staff and Finance agents can prepare trip approvals and chase missing receipts; a person approves above the ceiling you set. Reimbursements go out as normal transfers, with receipts you can share.
Questions people ask
What is the standard per diem in Nigeria for private companies?
There is no statutory per diem for private employers. Set your own amount by city, in naira, and review it at least yearly.
Is a travel allowance taxable in Nigeria?
Allowances are reported in the employer's annual return of emoluments. Whether a specific allowance is taxable under PAYE depends on how it is paid; ask your tax adviser.
Do staff need receipts for per diem?
Usually not for the per diem itself, but they should show the days away. Hotels, flights and transport should be evidenced.
How long should I keep travel receipts?
The Nigeria Tax Administration Act 2025 requires records to be kept for at least six years after the year of assessment.
Sources
- PwC Worldwide Tax Summaries: Nigeria corporate deductions (reviewed 29 May 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette text) · 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.