...Records N563bn in trade value during pilot phase
The Nigeria Customs Service (NCS) has officially launched its Authorised Economic Operator (AEO) programme, a significant milestone in its efforts to modernize trade facilitation, ease cost of doing business and enhance supply chain security.
The launch follows a successful pilot phase in April 2024 involving six companies.
Speaking at the launch of the event which held in Lagos on Friday, 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 collective trade value of the six participating companies increased from N185.8 billion in 2023 to N563.8 billion in 2024.
He said customs revenue generated from the companies also increased significantly, rising from N 18.4 billion in 2023 to NGN 51.1 billion in 2024, contributing to NCS overall revenue growth from NGN 3.2 trillion in 2023 to NGN 6.1trillion in 2024.
On the programme’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 programme, 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 programme, ” he said.
Adeniyi said through these successes, Nigeria is positioning itself as a reliable, predictable, and competitive trading partner, aligning President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030.
“The AEO programme 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 programme 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.
Highlight of the event was the presentation of AEO certification to the six pilot companies: Lelook Nigeria Limited, FrieslandCampina WAMCO Nigeria PLC, 11PLC (formerly Mobil Oil Nig. Plc) and First Class Refreshment Limited.
Others are Huawei Technology Company Nigeria Limited and Ideal Royal Crown Logistics Limited.
Adeniyi encouraged all compliant businesses to apply and participate from the AEO accreditation.
The event was attended by the Lagos State governor, represented by Commissioner for Commerce, Cooperatives, Trade & Investment, Folashade Kaosarat Ambrose, heads of agencies in the maritime sector, including the Managing Director of Nigerian Ports Authority (NPA) Dr Abubakar Dantsoho and the Executive Secretary of Nigerian Shippers Council, Dr Pius Akutah Ukeyima.
Others are Drector General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii,President of the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye Director-General of the Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Mustapha, all of whom lauded the AEO’s programme potential to reduce bottlenecks and facilitate trade.
Photo caption:
L-R: Managing Director of NPA, Dr Abubakar Dantsoho; Executive Secretary of Nigerian Shippers Council, Dr Pius Akutah Ukeyima; Comptroller-General of Customs, Bashir Adewale Adeniyi; Commissioner for Commerce, Cooperatives, Trade & Investment, Folashade Kaosarat Ambrose and a member of the Customs Board, Dr Muda Yusuf at the launch of the Authorized Economic Operator (AEO) programme by Customs in Lagos on Friday.
