In a significant move aimed at enhancing trade facilitation and supply chain security, the Nigeria Customs Service (NCS) has officially launched the Authorised Economic Operator (AEO) program.
The initiative, unveiled in Lagos by Comptroller General Bashir Adeniyi, is set to transform how businesses engage with customs, both within Nigeria and on the global stage.
During the launch event, Adeniyi emphasized that the AEO program reflects the evolving nature of customs-business relationships in response to the growing complexities of international trade.
The program, endorsed by the World Customs Organisation (WCO), certifies companies involved in the movement of goods, ensuring they meet globally recognized security and compliance standards.
By streamlining customs processes, the initiative promises to improve efficiency, reduce clearance times, and create a more secure trade environment.
READ ALSO: Israel and Hamas Complete Sixth Hostage-Prisoner Exchange
Collaboration has been a key driver behind the program’s implementation, with the support of President Bola Tinubu and Chairman of the Nigeria Customs Service Board, Mr. Olawale Edun, playing a crucial role.
Adeniyi acknowledged their leadership and strategic oversight, noting that government backing has been instrumental in bringing the initiative to life. Additionally, the Ministry of Marine and Blue Economy and other port agencies have worked closely with the NCS to strengthen the program’s operational framework.
The introduction of the AEO program aligns Nigeria’s trade policies with global best practices, drawing inspiration from His Majesty’s Revenue and Customs (HMRC) in the United Kingdom and the South African Revenue Service (SARS).
These two customs administrations have set benchmarks for efficient and secure trade facilitation, and the NCS has strategically modeled its framework to align with their successes.
READ ALSO: OpenAI Rejects Elon Musk’s $97.4 Billion Takeover Bid
Beyond simplifying customs procedures, the AEO certification is a stamp of trust and excellence, signaling that a business is committed to security, regulatory compliance, and operational efficiency.
Companies that achieve AEO status benefit from faster clearance times, reduced physical inspections, and a more seamless trade process—all of which contribute to cost savings and improved business operations.
The pilot phase of the AEO program, launched on April 15, 2024, has already delivered remarkable results. Businesses that participated in the program witnessed significant growth, with their collective trade value rising from N185.8 billion in 2023 to N563.8 billion in 2024.
READ ALSO: Trump Launches National Energy Council to Fuel AI Race Against China
Customs revenue from these certified companies also surged, increasing from N18.4 billion in 2023 to N51.1 billion in 2024. These impressive figures reflect the potential of the AEO program to drive economic growth and enhance Nigeria’s position in international trade.
Operational efficiency has also seen a major boost. One of the key objectives of the program was to reduce cargo clearance time from 168 hours (seven days) to 48 hours.
By the end of 2024, AEO-certified companies had not only met but exceeded this target, achieving an average cargo release time of 43 hours. This represents a 66.9% reduction in clearance time compared to the previous five-day processing period for non-certified companies.
The AEO program marks a transformative step forward for Nigeria’s trade landscape, offering businesses a faster, more secure, and globally recognized customs experience. As more companies embrace the initiative, the NCS remains committed to ensuring that trade in Nigeria is not only efficient but also competitive on the world stage.