Nigeria Customs Launches Authorised Economic Operator Program to Boost Global Trade

The Nigeria Customs Service (NCS) has introduced the Authorised Economic Operator (AEO) program, a strategic initiative aimed at enhancing trade facilitation and strengthening supply chain security both within Nigeria and globally. This innovative move aligns with international standards and best practices, positioning Nigeria as a more competitive player in global commerce.

Enhancing Trade Facilitation and Security

Comptroller General of the NCS, Bashir Adeniyi, officially inaugurated the AEO program in Lagos, highlighting its significance in the evolving customs-business relationship. The program, based on the World Customs Organisation (WCO) framework, certifies businesses involved in international trade, ensuring they comply with global supply chain security standards.

The AEO certification will offer participating businesses several benefits, including:

• Streamlined customs procedures
• Reduced physical inspections
• Faster cargo clearance times
• Greater efficiency in import and export processes

Government and Stakeholder Support

Adeniyi underscored the importance of collaboration among various stakeholders in ensuring the success of the AEO program. He expressed deep appreciation for the strong backing from President Bola Tinubu and Mr. Olawale Edun, the Chairman of the Nigeria Customs Service Board. Their strategic oversight has played a pivotal role in shaping and advancing the program.

Additionally, the NCS’s partnership with the Ministry of Marine and Blue Economy, along with other port agencies, has fortified the program’s implementation framework, ensuring seamless integration into Nigeria’s trade ecosystem.

Global Best Practices and Strategic Benchmarking

To ensure the effectiveness of the AEO program, the NCS benchmarked its model against leading customs administrations, particularly:

• His Majesty’s Revenue and Customs (HMRC), UK
• South African Revenue Service (SARS)

These benchmarks provide a globally recognized framework that enhances trade efficiency and ensures compliance with international security and regulatory standards.

Impressive Results from the Pilot Phase

Since the pilot phase launch on April 15, 2024, the AEO program has delivered remarkable results:

• The total trade value of six pilot AEO-certified companies surged from N185.8 billion in 2023 to N563.8 billion in 2024.
• Customs revenue collected from these companies increased from N18.4 billion in 2023 to N51.1 billion in 2024.
• Overall customs revenue grew from N3.2 trillion in 2023 to N6.1 trillion in 2024.

A significant achievement of the pilot phase was the reduction in cargo clearance time. The initial target of cutting clearance time from 168 hours (7 days) to 48 hours was surpassed, with AEO-certified companies achieving an average clearance time of 43 hours by December 31, 2024. This represents a 66.9% reduction in clearance time compared to the previous five-day standard for non-AEO operators.

Driving Nigeria’s Economic Growth

The AEO program is a key component of Nigeria’s broader economic objectives, particularly President Bola Tinubu’s vision of a one trillion-dollar economy by 2030. The program supports the President’s eight-point agenda, with a focus on:

• Enhancing food security through expedited clearance of agricultural machinery and inputs.
• Boosting economic growth by facilitating seamless trade and reducing bureaucratic bottlenecks.
• Creating jobs and business opportunities by fostering a more efficient trade environment.

A Bright Future for Nigeria’s Trade Landscape

The introduction of the Authorised Economic Operator (AEO) program marks a transformative step for Nigeria’s trade and customs operations. By aligning with global standards, fostering strategic partnerships, and streamlining customs procedures, the NCS is paving the way for an efficient, secure, and globally competitive trade environment.

For more details visit the official announcement on Nairametrics.