Business

Nigeria Customs Launches AEO Program to Boost Trade 

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The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adeniyi, has announced that launching the Authorised Economic Operator (AEO) program will enhance trade facilitation globally.

Speaking at the program’s inauguration in Lagos on Friday night, Adeniyi highlighted the evolving relationship between customs and businesses, highlighting the need for secure and efficient supply chains in response to the dynamic nature of international trade.

According to him, AEO, as defined by the World Customs Organisation (WCO), is a party involved in the international movement of goods.

“This has been certified by a National Customs Administration as complying with WCO or equivalent supply chain security standards.

“The direct oversight and strategic guidance from President Bola Tinubu, coupled with the support of the Chairman of the Nigeria Customs Service Board, Mr Olawale Edun, have been instrumental in driving this initiative forward.

“The synergy established with the Ministry of Marine and Blue Economy and other agencies in the ports have further strengthened our implementation framework.

“The decision of NCS to implement the AEO programme aligns with global best practices that began around April 2024.

“His Majesty’s Revenue and Customs (HMRC) UK and South Africa Revenue Authority (SARS) represented best practices both globally and within the African continent,” Adeniyi said.

The Customs boss said that AEO certification validated a company’s commitment to security, compliance, and operational excellence in international trade.

He said that through the AEO programme, certified operators would gain access to streamlined customs procedures and reduced physical inspections.

“The success of our pilot phase, which commenced on April 15, 2024, has been remarkable.

“Our six pilot AEO companies have demonstrated exceptional growth, with their collective trade value increasing significantly from N185.8 billion in 2023 to N563.8 billion in 2024.

“This growth is mirrored in the customs revenue generated from these companies, which rose from N18.4 billion in 2023 to N51.1 billion in 2024.

“This contributed meaningfully to our overall revenue, which grew from N3.2 trillion in 2023 to N6.1 trillion in 2024,” he said.

He said that the pilot phase had yielded transformative improvements in operational efficiency.

According to him, an ambitious target was set to reduce clearance time from 168 hours to 48 hours.

“By December 31, 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 per cent reduction in cargo clearance time compared to the pre-AEO status of five days and significantly outperforms the seven-day clearance period required for regular Economic Operators (EOs).

“This aligns perfectly with our national economic objectives, particularly President Bola Tinubu’s vision of achieving a one trillion-dollar economy by 2030,” he said.

He said that the AEO programme strategically complemented the President’s eight-point agenda by supporting food security through faster clearance of agricultural inputs and machinery.

“This is contributing to economic growth through trade facilitation and creating jobs through expanded business opportunities,” Adeniyi said.

 

 

 

NAN

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