Nigeria Customs Service (NCS) has begun full implementation of its Authorised Economic Operator (AEO) programme. This followed a successful ten-month pilot phase, during which the six participating companies recorded a 203.5 per cent increase in trade volume and a 94.1 per cent rise in revenue generation for the service.
At the launch of the programme in Lagos on February 14, six pioneer companies were certified for their participation and revenue contribution to the pilot phase.
According to the Comptroller-General of Customs, Bashir Adeniyi, AEO certification validates a company’s adherence to World Customs Organisation (WCO) supply chain security standards, granting them benefits such as streamlined customs procedures, reduced inspections and priority clearance processing.
Adeniyi highlighted the programme’s early successes, noting that since the pilot phase began on April 15, 2024, trade volume for participating AEO-certified companies had surged from N185.8 billion in 2023 to N563.8 billion in 2024.
Additionally, customs revenue from these firms jumped from N18.4 billion to N51.1 billion, contributing to the NCS’s overall revenue increase from N3.2 trillion to N6.1 trillion within a year.
He said businesses under the AEO scheme have also recorded cost savings exceeding N100 million within a quarter, with further reductions expected as the programme expands.
The Customs boss said these savings are projected to lower the cost of goods and services nationwide, benefitting consumers.
Adeniyi further revealed that cargo clearance times for AEO-certified companies have been slashed by 66.9 per cent, dropping from five days (168 hours) to an average of 43 hours, surpassing the initial 48-hour target.
According to Adeniyi, the AEO programme aligns with President Bola Ahmed Tinubu’s vision of a $1 trillion economy by 2030, noting that by modernising trade processes and reducing inefficiencies, the initiative is expected to attract foreign investment, strengthen non-oil exports, and enhance Nigeria’s industrial competitiveness.
To expand the programme’s reach, the Customs boss announced that registration for other eligible companies will open on February 17, 2025, stressing that the programme is also designed to support Small and Medium Enterprises (SMEs), which account for 96 per cent of Nigerian businesses and contribute 46 per cent to GDP.
The Deputy Chairman, House Committee on Customs and Excise, Hassan Shehu Hussain, emphasised the programme as a key driver of economic growth and investment, urging importers, exporters, freight forwarders and regulatory agencies to embrace the initiative, stressing that its success depends on strong public-private collaboration.
Hussain also emphasised the need for a robust legislative framework to sustain the programme’s benefits and pledged ongoing oversight to combat illicit trade, enhance customs efficiency and improve trade competitiveness.
The Executive Secretary/Chief Executive Officer of the Nigerian Shippers’ Council (NSC), Pius Akutah, noted that inefficiencies in the trade sector had previously slowed business growth, forcing cargo to exit Nigeria’s shores.
He expressed confidence that the AEO programme would streamline clearing processes, reduce trade barriers and improve trade efficiency.
The Secretary-General of the World Customs Organisation (WCO), Ian Sanders, commended the NCS for aligning its operations with international best practices, including the World Trade Organisation’s Trade Facilitation Agreement and the WCO’s Kyoto Convention.
He emphasised that the AEO initiative is expected to attract foreign investment and strengthen Nigeria’s position as a regional trade hub.
Sanders also called on Nigerian authorities to adopt a coordinated border management approach to ensure seamless trade facilitation across all regulatory agencies.
The Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, welcomed the initiative, noting that SMEs will significantly benefit from reduced bottlenecks and improved returns on investment.
The President of the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, praised the AEO programme, emphasising that the Organised Private Sector (OPS) has the capacity to generate the revenue needed for 2025 if provided with the right environment.
Oye asserted that the OPS, which represents 97 per cent of the economy, can help cover the N13 trillion national budget through productivity rather than increased borrowing or higher taxes.
