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
As at October 2026, the rates come from the Withholding Regulations 2024, which stay in force under the Nigeria Tax Administration Act 2025: rent 10%, professional, consultancy and management fees 5% (10% for non-residents), supply of goods and other services 2%, and construction 2% or 5% depending on type. Companies, government bodies and payment agents deduct; individuals paying privately do not.
Withholding tax (WHT) is deducted by the payer from an invoice and remitted to the tax authority; the supplier uses the receipt as a credit against its own income tax. The rates Nigerian businesses use today come from the Deduction of Tax at Source (Withholding) Regulations 2024, effective 1 July 2024. They replaced the old single "contracts" rate with separate rates for goods, services and construction.
Are the 2024 rates still current in 2026?
The Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025 (NTAA) took effect on 1 January 2026. NTAA s.146(c) keeps earlier regulations and guidelines in force to the extent they are consistent with the new law. No replacement WHT regulations under the 2025 Acts were found in a search in October 2026, so the 2024 table below is the one to use, as at October 2026. Check the NRS website for any later notice.
The rate table
Rates as summarised in PwC Nigeria's highlights of the 2024 Regulations. "Corporate" means the supplier is a company; "individual" covers non-corporate suppliers.
| Payment | Company, resident | Company, non-resident | Individual, resident | Individual, non-resident |
|---|---|---|---|---|
| Rent | 10% | 10% | 10% | 10% |
| Professional, consultancy, management, technical fees and commission | 5% | 10% | 5% | 10% |
| Supply of goods (not by the manufacturer) | 2% | n/a | 2% | n/a |
| Other services | 2% | 5% | 2% | 5% |
| Construction of roads, bridges, buildings, power plants | 2% | 5% | 2% | 5% |
| Other construction | 5% | 10% | 5% | 10% |
| Brokerage | 5% | 10% | 5% | 10% |
| Dividends and interest | 10% | 10% | 10% | 10% |
| Royalties | 10% | 10% | 5% | 5% |
| Directors' fees | n/a | n/a | 15% | 20% |
BusinessDay's July 2024 report shows how far some rates moved: professional fees for residents fell from 10% to 5%, other services and supply of goods fell from 5% to 2%, and directors' fees rose from 10% to 15%.
What happened to "contracts"?
Older guides list a single contracts rate. Under the 2024 Regulations you classify the contract by what is supplied: goods at 2% (and no WHT at all where the supplier manufactured them), construction at 2% or 5% depending on the type, and other services at 2%. A contract mixing goods and installation should be split on the invoice so each part is treated correctly.
Who must deduct
Danol Partners' overview on Mondaq lists the deductors: bodies corporate and unincorporated bodies other than individuals, federal ministries, departments and agencies, statutory bodies, public authorities, other institutions including tax-exempt ones, and payment agents acting for any of them. An individual paying in a private capacity does not deduct.
- Small company exemption: a company with turnover below ₦25m need not deduct where the supplier has a TIN and the transaction is ₦2m or less. See the small business exemption explained.
- No TIN: the rate doubles on non-passive income.
- Over-the-counter purchases paid on the spot with no prior contract are exempt, as are goods made by the supplier, insurance premiums and out-of-pocket expenses billed separately from fees.
- Remit to the NRS by the 21st of the following month; to a state revenue service by the 30th; then give the supplier a receipt showing its name, TIN, the nature of the transaction, gross amount and tax deducted.
Worked examples
Examples only, assuming resident suppliers with TINs and a payer that is not a small company.
| Invoice | Rate | WHT deducted | Net paid |
|---|---|---|---|
| Office rent ₦4,800,000 | 10% | ₦480,000 | ₦4,320,000 |
| Audit fee ₦1,500,000 to a firm | 5% | ₦75,000 | ₦1,425,000 |
| Cleaning services ₦600,000 | 2% | ₦12,000 | ₦588,000 |
| Fencing works ₦2,000,000 (other construction) | 5% | ₦100,000 | ₦1,900,000 |
These examples carry no VAT. If VAT is on the invoice, confirm with your adviser whether WHT is calculated on the amount before or after VAT.
Mistakes that cost money
- Using the old 10% professional fee rate for a resident consultant. Under the 2024 Regulations it is 5%; over-deducting leaves the supplier short and invites a dispute.
- Deducting from a supplier's manufactured goods. Goods the supplier produced itself are exempt, so a furniture maker selling its own chairs should be paid in full.
- Paying a supplier with no TIN at the normal rate. The rate doubles, and the payer carries the gap if it under-deducts.
- Deducting but not remitting. The supplier can still claim the credit with the receipt, but the payer can still be pursued for the unremitted tax.
- Forgetting the receipt. The supplier needs it to claim credit; without it the deduction looks like an unpaid balance.
If you are the supplier
Invoice the gross amount, expect the net, and record the difference as WHT receivable rather than a bad debt. Chase the receipt each month. Keep receipts with your invoices for at least six years under NTAA s.31, because you will need them when you file your annual return. If a customer applies the wrong rate, raise it promptly with the rate table above and ask for a corrected receipt.
Where Pryme fits
The Finance agent can prepare the WHT deduction for each supplier payment from the table above and draft the monthly schedule; a person approves before anything moves. For receiving businesses, withholding tax on invoices explains how to collect receipts and use the credit, and invoicing keeps the gross and net amounts on one record.
Questions people ask
What is the WHT rate on rent in Nigeria?
10% for all recipients, resident or non-resident, company or individual, under the 2024 Withholding Regulations as summarised by PwC.
What is the WHT rate on professional fees in 2026?
5% for resident suppliers and 10% for non-residents, under the 2024 Regulations, which remain in force under NTAA s.146(c) as at Oct 2026.
What is the WHT rate on contracts in Nigeria?
There is no single contracts rate now. Supply of goods is 2% (none if the supplier manufactured them), building and road construction 2%, other construction 5%, other services 2%.
When is WHT remitted?
By the 21st of the month after payment to the NRS, or the 30th to a state revenue service, per the 2024 Regulations.
Sources
- Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 (PwC Nigeria, Jul 2024) · accessed Oct 2026
- Overview of the Deduction of Tax at Source (Withholding) Regulations 2024 (Mondaq, Danol Partners, 16 Oct 2024) · accessed Oct 2026
- Nigeria's withholding tax reforms: key changes and implications (BusinessDay, 11 Jul 2024) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · 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.