The Nigeria Customs Service (NCS) has officially launched the Authorized Economic Operator (AEO) programme at the Lagos Continental Hotel, marking a significant shift towards enhancing trade facilitation and supply chain security in Nigeria. The Comptroller General of Customs, in his keynote address, highlighted the importance of trust and collaboration between customs authorities and business entities as the foundation of this initiative.
The AEO programme, recognized globally by the World Customs Organization (WCO), is designed to certify businesses that comply with international supply chain security standards. Certified operators will benefit from streamlined customs procedures, reduced inspections, and priority treatment during clearance processes. The NCS, in aligning with global best practices, benchmarked its AEO framework against leading customs administrations, including the UK’s HM Revenue and Customs (HMRC) and the South African Revenue Service (SARS).
According to the Comptroller General, the pilot phase of the AEO programme, which began on April 15, 2024, has yielded remarkable success. Six pilot companies experienced significant growth, with their total trade value rising from NGN 185.8 billion in 2023 to NGN 563.8 billion in 2024. This expansion also led to an increase in customs revenue generated from these companies, which surged from NGN 18.4 billion in 2023 to NGN 51.1 billion in 2024. The efficiency gains were also evident, as clearance times for AEO-certified companies were reduced from 168 hours to an average of 43 hours—exceeding the set target of 48 hours.
The Comptroller General emphasized that the AEO programme aligns with President Bola Ahmed Tinubu’s economic vision of achieving a $1 trillion economy by 2030. The initiative is expected to support economic growth by expediting trade processes, enhancing transparency, and promoting investment. He further noted that the programme will play a pivotal role in improving Nigeria’s competitiveness in the global trade environment by reducing transaction costs and fostering a predictable business climate.
Additionally, the programme aims to support Small and Medium Enterprises (SMEs), with two pioneering SMEs—Lelook Nigeria Limited and 1st Class Refreshment Ltd—already benefiting from the initiative. Lelook Nigeria Limited has successfully exported goods under the African Continental Free Trade Area (AfCFTA), while 1st Class Refreshment Ltd has expanded the reach of Nigerian delicacies globally.
The success of the AEO programme has been attributed to strong government support, particularly from President Tinubu, the Minister of Finance, and the Ministry of Marine and Blue Economy. The Nigerian Ports Authority (NPA) has also played a crucial role in facilitating the programme by providing dedicated facilities for AEO-certified cargo handling and ensuring smooth customs procedures.
As the NCS moves towards full implementation of the AEO programme, the Comptroller General called on more businesses to take advantage of this opportunity, emphasizing that while the certification process is rigorous, the benefits in terms of cost savings and operational efficiency are substantial.
With its official launch, the AEO programme is set to position Nigeria as a reliable and competitive trade partner on the global stage, reinforcing the nation’s commitment to trade facilitation, economic growth, and supply chain security.