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
The Nigeria Revenue Service (which replaced FIRS) audits companies under the Nigeria Tax Administration Act 2025: it can require records, including electronic ones, giving at least seven days to produce them, and visit premises at reasonable times. It can raise additional assessments within six years. You can object in writing within 30 days of an assessment, and then appeal to the Tax Appeal Tribunal.
Who audits and why
For a Nigerian company owned from the US, the main federal tax authority is the Nigeria Revenue Service (NRS), which took over from the Federal Inland Revenue Service (FIRS). NTAA 2025 s.3(1) gives the NRS taxes on companies, VAT and non-residents. State internal revenue services handle PAYE on employees, so a payroll audit usually comes from the state, not the NRS. Audits are triggered by routine selection, by refunds or large credits, by mismatches between returns and third-party data, or by a sector review. The Act also allows joint audits by more than one authority (s.48).
How an audit unfolds
- Notice: the authority writes asking for records or information. Under s.57(2), the notice must give at least seven days from service; under s.57(4) you can apply in writing for more time before it expires.
- Records: s.57(1)(e) covers records held in computers, electronic devices or cloud facilities, not just paper.
- Visits: s.58(1) lets an authorised officer enter premises and examine records at reasonable times; s.58(5) excludes a private dwelling without consent or a warrant.
- Findings: the auditors share queries and a computation. Respond to each point with documents.
- Assessment: if they conclude more tax is due, they raise an additional assessment. Under s.36 this must be within six years, but there is no limit for deliberate misstatement.
- Payment or objection: tax is payable within 30 days of the notice (s.49(2)), unless you object.
What they ask for
| Area | Typical documents |
|---|---|
| Company income tax | Audited accounts, tax computations, ledgers, fixed asset register |
| VAT | Monthly returns, sales and purchase invoices, VAT reconciliations |
| Withholding tax | Schedules, credit notes, contracts with suppliers |
| Related-party charges | Intercompany agreements, invoices, transfer pricing documentation |
| Payments abroad | Invoices from the US parent, bank evidence, FX documents |
| Payroll (often state) | Payroll registers, PAYE remittance receipts, staff contracts |
NTAA 2025 s.31 requires books and records for at least six years after the year of assessment, in English. For a US-owned company, management fees and service charges from the parent attract close attention; see transfer pricing between the two companies.
Objecting and appealing
- Object in writing within 30 days of service of the assessment (s.41), stating the disputed issues with values, the amendments sought, your justification and the profit and tax you accept. Time can be extended for good cause.
- The authority must respond within 90 days, or the objection is treated as upheld (s.41).
- Collection is held in abeyance pending the objection (s.49(3)); tax you accept should still be paid.
- If the decision goes against you, appeal to the Tax Appeal Tribunal within 30 days, under the Joint Revenue Board of Nigeria (Establishment) Act 2025, Second Schedule para 2(2).
- An appeal from the Tribunal to the Federal High Court is on a point of law, and NTAA 2025 requires 20% of the disputed amount as security.
A worked example
Example only. The NRS audits a US-owned Lagos subsidiary and proposes adding back a ₦60,000,000 management fee paid to the US parent, saying there is no evidence of services. The company produces the service agreement, monthly timesheets and deliverables, and the board approval. The auditors accept ₦45,000,000 and disallow ₦15,000,000 for a period with no evidence. The company accepts the ₦15,000,000 adjustment and pays the tax on it, and objects to nothing further. Had it disputed the whole amount without documents, it would have faced the full assessment and the 30-day clock.
Behaviour during the audit
- Answer what is asked, in writing, with a document index; keep copies of everything you hand over.
- Route all contact through one named person and the tax adviser, so answers are consistent.
- Ask for queries in writing and agree response dates you can meet.
- Do not offer payments or gifts to officers; pay any tax only to official NRS channels with a receipt.
- Keep minutes of every meeting and send them to the auditors to confirm.
What the US owner should do
- Make sure someone in Nigeria receives and logs every NRS letter the day it arrives.
- Diary the seven-day, 30-day and 90-day dates as soon as a notice or assessment lands.
- Engage the company's accredited tax adviser before the first meeting, not after the assessment.
- Keep the intercompany file (agreements, invoices, evidence of services) ready all year.
- Check that Rev360 records match the company's own filings. Templars reports Rev360 replaced TaxPro Max on 30 April 2026 and migrated filing histories.
- Keep the US parent's accountant informed: a Nigerian adjustment can affect US foreign tax credit figures.
This is information, not tax advice. Our guide to company income tax for a US-owned subsidiary covers the underlying tax, and hiring an outsourced accountant covers audit support in the engagement.
Where Pryme fits
Auditors trace payments to evidence. Payments from a Pryme Business Account come with records, and a verifiable statement or receipt through VerifyDoc.ai lets an auditor check a document is genuine and unaltered.
Questions people ask
Is FIRS now NRS?
Yes. The Nigeria Revenue Service replaced the Federal Inland Revenue Service and administers company taxes, VAT and non-resident taxes under NTAA 2025 s.3(1).
How long do I have to give records in a Nigerian tax audit?
The notice must allow at least seven days from service (NTAA 2025 s.57(2)). Apply in writing for more time before it expires.
How far back can the NRS assess?
Six years for additional assessments under s.36, with no time limit for deliberate misstatement.
How do I object to a Nigerian tax assessment?
In writing within 30 days of service, stating the disputed issues, values and justification (s.41). The authority has 90 days to respond, or the objection is upheld.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Joint Revenue Board of Nigeria (Establishment) Act 2025 (approved print copy) · accessed Oct 2026
- Templars: Client alert, from TaxPro Max to Rev360 (13 May 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.