In an effort to modernize trade facilitation, ease the cost of doing business, and enhance supply chain security, the Nigeria Customs Service (NCS), over the weekend in Lagos launched the Authorised Economic Operator (AEO) program. The launch follows a successful pilot phase in April 2024 involving six companies. Speaking at the event, Comptroller General of Customs, Adewale Adeniyi announced that the AEO registration portal would open on February 17 for eligible companies.
He highlighted the remarkable success of the pilot phase, noting that the collective trade value of the six participating companies increased from N185.8 billion in 2023 to N563.8 billion in 2024.
He said NCS revenue generated from the companies also increased significantly, rising from N18.4 billion in 2023 to N 51.1 billion in 2024, contributing to NCS’s overall revenue growth from N 3.2 trillion in 2023 to N 6.1 trillion in 2024.
On the program’s impact on operational efficiency, Adeniyi said, “We set an ambitious target to reduce clearance time from 168 hours to 48 hours. By December 31st, 2024, our AEO-certified companies were achieving an average release time of 43 hours – surpassing our target by 5 hours.
This represents a remarkable 66.9% reduction in cargo clearance time compared to the pre-AEO status of 5 days and significantly outperforms the 7-day clearance period required for regular Economic Operators (EOS).”
Adeniyi outlined the key benefits of the AEO program, including accelerated customs clearance processes; substantial reduction in physical inspections; priority treatment in customs processes; enhanced predictability in supply chain operations; and measurable cost efficiencies. He revealed that the pilot companies achieved cost savings exceeding N100 million within a quarter.
“The true measure of this partnership’s success is beyond the metrics, it is in the quality of relationships we are building. One compelling example is how our AEO partners have embraced the principle of self-regulation. Recently, one of our pilot beneficiaries demonstrated exceptional integrity by voluntarily disclosing an underpayment of duty amounting to several millions of naira. This level of trust and transparency where partners self-audit and bring oversights to our attention – exemplifies the essence of the AEO program, ” he said.
Adeniyi said through these successes, Nigeria is positioning itself as a reliable, predictable, and competitive trading partner, aligning with President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030.
“The AEO program strategically complements the President’s 8-Point Agenda by supporting food security through faster clearance of agricultural inputs and machinery; contributing to economic growth through trade facilitation; creating jobs through expanded business opportunities; improving access to capital by reducing operational costs for businesses; and fighting corruption through enhanced transparency in customs processes.
“Furthermore, it reinforces the administration’s commitment to boosting non-oil exports, strengthening agricultural value chains, and improving the manufacturing sector’s competitiveness. This program also supports the government’s focus on technological advancement and digital transformation of government services, while contributing to the Presidential initiative on Customs modernization, ” he said.
