Nigeria Customs Launches Authorised Economic Operator Programme to Boost Trade Efficiency
The Nigeria Customs Service (NCS) has officially launched the Authorised Economic Operator (AEO) Programme, a landmark move to enhance trade facilitation and streamline customs procedures.
The initiative, aimed at strengthening trust-based partnerships between Customs and businesses, aligns with global best practices to ensure efficient, secure, and transparent international trade operations.
The Comptroller-General of Customs (CGC), while addressing stakeholders at the event, underscored the essence of trust as a fundamental pillar of both personal and professional relationships.
“Today, as the world celebrates trust and commitment through Valentine’s Day, we gather to commemorate a different but equally important partnership – one that embodies the principles of collaboration, compliance, and mutual prosperity in international trade,” he remarked.
The AEO Programme marks a paradigm shift from traditional transaction-based customs control to a more sophisticated compliance management system.
Businesses certified under the programme will benefit from expedited customs procedures, reduced inspections, and priority treatment during clearance processes.
“The AEO framework has been designed in line with the World Customs Organization’s (WCO) global standards, ensuring that participating companies adhere to stringent security and compliance requirements,” the CGC stated. “By embracing this model, we are positioning Nigeria as a competitive and predictable trading partner on the international stage.”
Since its pilot phase launched on 15 April 2024, six AEO-certified companies have demonstrated exceptional trade growth, with their collective trade value surging from NGN 185.8 billion in 2023 to NGN 563.8 billion in 2024.
Correspondingly, customs revenue from these companies increased from NGN 18.4 billion to NGN 51.1 billion within the same period, contributing significantly to the NCS’s overall revenue jump from NGN 3.2 trillion in 2023 to NGN 6.1 trillion in 2024.
Additionally, one of the programme’s most notable successes has been a drastic reduction in cargo clearance time.
The AEO initiative targeted a reduction from 168 hours to 48 hours, and by the close of 2024, AEO-certified businesses were averaging 43 hours, exceeding expectations.
This represents a 66.9% improvement compared to non-AEO operators, who typically clear goods in seven days.
The CGC highlighted how the AEO programme aligns with President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030.
By facilitating trade, reducing transaction costs, and improving customs efficiency, the initiative is expected to bolster food security, enhance industrial competitiveness, and attract foreign direct investment.
“For Nigeria’s 96% SME-dominated business landscape, the AEO programme offers unparalleled opportunities,” the CGC stated, citing Lelook Nigeria Limited and 1st Class Refreshment Ltd as prime examples of SMEs leveraging the initiative to expand their international market reach.
The success of the AEO Programme has been reinforced by high-level government support. The CGC acknowledged the direct oversight of President Tinubu, the backing of the Minister of Finance, Mr Olawale Edun, and the strategic collaboration with the Nigerian Ports Authority (NPA).
He noted that the NPA’s commitment to providing dedicated facilities for AEO cargo handling is expected to further streamline trade processes.
Internationally, the Nigeria Customs Service has received support from the World Customs Organization (WCO), the World Bank’s ARMOR Programme, and the WCO Accelerate Trade Facilitation team.
The customs boss acknowledged that their contributions have played a pivotal role in the programme’s development and implementation.
With the full implementation of the AEO Programme commencing today, the CGC announced that applications for new participants would open on 17 February 2025 via aeo.nigeriatradehub.gov.ng.
“I encourage all eligible businesses to seize this opportunity to transform their trade operations. The path to AEO certification may be demanding, but the rewards – reduced costs, faster clearance, and enhanced global competitiveness – are undeniable,” he urged.
The launch of the AEO Programme stands as a significant milestone in Nigeria’s trade evolution, fostering greater efficiency, security, and economic prosperity for the nation’s international commerce landscape.
