The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adeniyi, has announced that the newly launched Authorised Economic Operator (AEO) program will significantly enhance trade facilitation both within Nigeria and across the globe.
Adeniyi made this declaration during the official inauguration of the programme in Lagos on Friday night.
According to Adeniyi, the AEO initiative reflects the evolving nature of customs-business relationships, driven by the dynamic demands of international trade and the increasing need for secure and efficient supply chains.
He explained that the AEO program, as defined by the World Customs Organisation (WCO), certifies entities involved in the international movement of goods, ensuring they comply with WCO or equivalent supply chain security standards.
Collaborative efforts and government support
Adeniyi highlighted the critical role of collaboration among stakeholders in the success of the AEO program.
- He also expressed gratitude for the strong support received from the highest levels of government, particularly from 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, alongside 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 implementation framework of the programme.
Alignment with global best practices
The NCS’s decision to implement the AEO program aligns with global best practices, which began gaining traction around April 2024.
Adeniyi revealed that the service strategically 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.
Pilot phase success
The pilot phase of the AEO programme, 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.
- 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).
More insights
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 programme 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.
