As Nigeria prepares to introduce new tax rates at the end of the month, fintech company Paypaxe has unveiled a payroll automation platform aimed at helping businesses stay compliant with the country’s evolving tax landscape.
The platform, launched in Abuja, is designed to support companies—particularly small and medium-sized enterprises (SMEs)—in automating payroll processes, calculating statutory deductions, and ensuring proper remittance under Nigeria’s tightening regulatory environment.
Paypaxe founder Ms. Belema Mary Maxwell explained that many Nigerian businesses still rely on manual or informal payroll methods, often involving bank officers or ad hoc systems that increase the risk of errors and non-compliance.
“SMEs struggle with payroll administration, and most do not have the resources or expertise to manage statutory deductions correctly,” Maxwell said. “Our web-based payroll system allows businesses to register employees, automate salary payments, and compute deductions in line with applicable laws—eliminating manual processes.”
According to Maxwell, the platform also helps companies navigate the full payroll lifecycle by guiding them through remittance and filing obligations, thereby reducing the burden of dealing with multiple systems or platforms.
A key feature of the Paypaxe solution is its direct integration with tax remittance infrastructure, enabling businesses to move seamlessly from payroll processing to statutory filings and payments within a single workflow.
Maxwell also noted that poor accounting and record-keeping remain significant challenges for Nigerian firms, especially smaller enterprises. To address this, Paypaxe includes enterprise resource planning (ERP) tools that help businesses track payroll costs, manage invoices, and maintain accurate records supported by receipts and bank transactions.
She emphasized that the system is tailored to local business realities, including petty cash management and small-value transactions—areas often overlooked by foreign accounting software.
The payroll module is expected to be available for business onboarding before the end of the month, while the broader accounting and ERP features will roll out by the end of February.
Paypaxe’s Long-Term Vision: Mortgage Financing for Nigerians
Beyond payroll and business management tools, Paypaxe also revealed ambitious plans to offer mortgage financing to everyday Nigerians—a sector that has historically remained inaccessible to many due to high costs and limited financing options.
“For you to have a house in Nigeria today is very, very difficult,” Maxwell said. “At the heart of Paypaxe is the desire to support everyday Nigerians who work hard and deserve access to home ownership.”
The company plans to offer mortgage loans with tenures ranging from 25 to 50 years, aiming to make housing affordable and accessible to a wider population, not just the wealthy or politically connected.
Paypaxe positions itself not merely as a payments app, but as a broader financial management platform. Maxwell explained that the app includes tools to help users track income and expenses, budget effectively, and set savings goals.
The platform automatically categorizes spending and presents it in charts, helping users understand their financial behavior and make more informed decisions.
Regulatory Roadmap and Investment Partnerships
Maxwell stated that Paypaxe currently operates through partnerships with licensed institutions, with plans to obtain its own regulatory approvals over time. The company’s roadmap includes securing a banking licence within a year, launching “Paypaxe Homes” within two years, and obtaining a remittance licence within five years to support diaspora remittances and homeownership savings.
In addition, Paypaxe has partnered with Cordros Capital to offer regulated investment products through the app. Cordros Capital’s Head of Abuja and Northern Region, Ms. Fatima Daniel Okpalaji, said the partnership prioritises investor protection and transparency.
“Paypaxe is not licensed to hold investment funds, and that’s where we come in,” Okpalaji said. “Savings and investments are different. Saving is putting money aside; investment is putting money to work.”
She added that users can invest as little as N10,000 in money market instruments, which offer liquidity and quick access to funds—features that are crucial for everyday users.
“We’re starting with money market investments because of flexibility,” she said. “If you need your money, you submit your instruction and within 24 hours, you get value for your money.”