business
Nigeria Customs Launches AEO Program to Boost Global Trade
The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adeniyi, recently announced the launch of the Authorised Economic Operator (AEO) program, aimed at significantly improving trade facilitation within Nigeria and on a global scale.
Speaking at the official inauguration of the program in Lagos, Adeniyi highlighted that the AEO initiative represents the evolving nature of customs-business relationships. This evolution is driven by the dynamic demands of international trade and the growing need for secure and efficient supply chains.
Adeniyi emphasized the crucial role of collaboration among stakeholders for the success of the AEO program. He expressed gratitude for the strong support from the highest levels of government, particularly President Bola Tinubu and the Chairman of the Nigeria Customs Service Board, Mr. Olawale Edun.
“The direct oversight and strategic guidance from President Bola Tinubu, along with the support of Mr. Olawale Edun, have been pivotal in advancing this initiative,” Adeniyi stated.
He also acknowledged the synergy between the NCS and the Ministry of Marine and Blue Economy, as well as other port agencies, which has strengthened the program’s implementation framework.
The implementation of the AEO program by the NCS aligns with global best practices, which began gaining traction around April 2024. Adeniyi revealed that the service benchmarked its framework against two leading customs administrations: His Majesty’s Revenue and Customs (HMRC) in the United Kingdom and the South African Revenue Service (SARS).
These institutions represent best practices both globally and within the African continent. Adeniyi emphasized that AEO certification validates a company’s commitment to security, compliance, and operational excellence in international trade. Certified operators will benefit from streamlined customs procedures and reduced physical inspections, leading to faster clearance times and improved efficiency.
The pilot phase of the AEO program, which commenced on April 15, 2024, has already yielded remarkable results. Adeniyi reported that the six pilot AEO companies experienced significant growth, with their collective trade value rising from N185.8 billion in 2023 to N563.8 billion in 2024.
Similarly, customs revenue generated from these companies increased from N18.4 billion in 2023 to N51.1 billion in 2024, contributing to the NCS’s overall revenue growth from N3.2 trillion in 2023 to N6.1 trillion in 2024.
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The pilot phase also achieved transformative improvements in operational efficiency. Adeniyi noted that the ambitious target of reducing cargo clearance time from 168 hours to 48 hours was surpassed, with AEO-certified companies achieving an average release time of 43 hours by December 31, 2024.
This represents a 66.9% reduction in clearance time compared to the pre-AEO status of five days and significantly outperforms the seven-day clearance period for regular Economic Operators (EOs).
The AEO program aligns with Nigeria’s national economic objectives, particularly President Bola Tinubu’s vision of achieving a one trillion-dollar economy by 2030. Adeniyi explained that the program supports the President’s eight-point agenda by promoting food security through faster clearance of agricultural inputs and machinery, driving economic growth through trade facilitation, and creating jobs through expanded business opportunities.
With the official launch, more companies are expected to enroll in the program, further boosting Nigeria’s trade capacity and positioning the country as a key player in the global supply chain.
The Nigeria Customs Service has reiterated its commitment to working closely with all stakeholders to ensure the continued success of the AEO initiative, ultimately fostering a more efficient and secure trading environment for businesses operating within and outside Nigeria.
