As the Nigerian Revenue Service prepares to begin the implementation of new tax rates at the end of the month, fintech company Paypaxe has announced the launch of a payroll automation platform aimed at helping businesses comply with the new tax regime.
The announcement was made in Abuja during the official launch of the company, where the founder of Paypaxe, Ms Belema Mary Maxwell, explained that the platform was created to reduce the burden of payroll management and tax compliance for Nigerian businesses.
According to her, the timing of the launch is deliberate, as tax enforcement is becoming tighter and businesses are under increasing pressure to meet their statutory obligations correctly and on time.
Ms Maxwell said Paypaxe is focused on supporting Nigerian businesses in managing salary payments, statutory deductions, and regulatory filings within the current legal framework.
She explained that the web based payroll system allows companies to register their businesses and employees, automate salary payments, and calculate statutory deductions in line with existing tax and labour laws, without relying on manual processes.
“The web based payroll system allows companies to register their businesses and employees, automate salary payments and compute statutory deductions in line with applicable rules, without manual processes,” Maxwell said.
She noted that many small and medium sized enterprises struggle with payroll administration, often using informal methods such as spreadsheets or relying on bank officers to pay staff. According to her, these practices expose businesses to errors, delays, and compliance risks.
“With the payroll system, businesses can register their employees, automate salary payments and ensure all deductions are properly calculated,” she said. “Once payroll is processed, the system guides businesses through the remittance process so they can meet their obligations without confusion.”
She added that the platform integrates directly with tax remittance infrastructure, allowing businesses to move from salary processing to filing and payment of statutory obligations within a single workflow, instead of moving between multiple platforms.
Ms Maxwell also highlighted poor accounting and record keeping as a major weakness among Nigerian businesses, especially smaller firms.
She said Paypaxe addresses this challenge through enterprise resource planning tools that help businesses identify legitimate expenses, track payroll related costs, manage invoices, and maintain proper records supported by receipts and bank transactions.
According to her, the system was designed to reflect local business realities, including petty cash management and small value transactions, which are often not well supported by foreign accounting software.
She disclosed that the payroll module would be open for business onboarding before the end of the month. She added that the broader accounting and enterprise resource planning features of the platform are expected to be rolled out before the end of February.
Looking beyond payroll and accounting, Ms Maxwell revealed that Paypaxe has long term plans to expand into mortgage financing for ordinary Nigerians.
“For you to have a house in Nigeria today is very, very difficult. You need to maybe have millions stacked,” she said. “At the heart of Paypaxe is the desire to support everyday Nigerians who work hard and deserve access to home ownership.”
She said the company plans to offer mortgage loans with repayment periods ranging from 25 to 50 years, arguing that home ownership should not be limited to only the wealthy or politically connected.
Ms Maxwell explained that Paypaxe was launched as a financial management and payments platform to address gaps in Nigeria’s digital banking ecosystem.
“We are not just a financial payments app like a banking app; we are also a financial management app,” she said. “On Paypaxe, we give users tools to become better money managers, from tracking income and expenses to budgeting and setting savings targets.”
She added that the platform automatically categorises spending and presents it in charts, helping users clearly understand their spending habits.
On regulation, Ms Maxwell said Paypaxe is currently operating through partnerships with licensed financial institutions, while working towards securing its own approvals.
“Our near term goal is to secure a banking licence within a year,” she said. “In two years, we plan to launch Paypaxe Homes, and within five years, obtain a remittance licence to enable Nigerians in the diaspora send money home and save towards home ownership.”
On the investment side, Ms Maxwell said Paypaxe is partnering with Cordros Capital to offer regulated investment products through the app.
Speaking at the event, the Head of Abuja and Northern Region at Cordros Capital, Ms Fatima Daniel Okpalaji, said the partnership places strong emphasis on transparency and investor protection.
“They are not licensed to hold investment funds, and that is where we come in,” she said. “Savings and investments are different. Saving is putting money aside; investment is putting money to work.”
Ms Okpalaji said users would be able to invest as little as ten thousand naira in money market instruments, which offer liquidity and quick access to funds.
“We are starting with money market investments because of flexibility. If you need your money, you submit your instruction and within 24 hours, you get value for your money. That flexibility is key for everyday users,” she added.
The launch of Paypaxe comes at a time when Nigerian businesses are facing increased regulatory scrutiny, rising compliance costs, and the need for better financial management tools to survive and grow under the new tax environment.