Pilot AEO programme reduces cargo clearance time by 66.9% – Customs

…launches AEO to improve supply chain security, trade facilitation

The Nigerian Customs Service has said that its pilot Authorised Economic Operator (AEO) programme has reduced cargo clearance time by 66.9 percent from 168 to 43 hours, surpassing the Service’s target of 48 hours.

The reduced cargo clearance time also outperformed the pre-AEO status of five days and the seven-day clearance period for regular Economic Operators (EOs).

Adewale Adeniyi, the comptroller general of Customs who made this known at the official launch of the NCS AEO programme on Friday in Lagos, said the pilot phase had yielded transformative improvements in operational efficiency.

“These achievements substantiate the compelling benefits of the AEO programme: accelerated customs clearance processes, a substantial reduction in physical inspections, priority treatment in customs processes, enhanced predictability in supply chain operations,” he said.

He added that AEO also provides measurable cost efficiencies which is evidenced in its pilot companies achieving cost savings exceeding N100 million within a quarter.

“The true measure of this partnership’s success is beyond the metrics, it is in the quality of relationships we are building,” he noted, adding that one of the compelling examples is how the Service AEO partners have embraced the principle of self-regulation.

Read also: Nigeria’s economy expands for second consecutive month – CBN

According to him, the AEO programme is a key part of the NCS modernisation efforts aimed at aligning Nigeria with global trade facilitation and supply chain security standards.

He noted that the demonstrated successes already recorded at the pilot phase send a clear message to the international trade community that Nigeria is positioning itself as a reliable, predictable and competitive trading partner.

According to him, this aligns perfectly with the country’s economic objectives, particularly President Bola Tinubu’s vision of achieving a $1 trillion economy by 2030.

He noted that the AEO programme strategically complements the President’s 8-Point Agenda by supporting food security through faster clearance of agricultural inputs and machinery and contributing to economic growth through trade facilitation among others.

He added that it reinforces the administration’s commitment to boosting non-oil exports, strengthening agricultural value chains, and improving the manufacturing sector’s competitiveness.
“For our Small and Medium Enterprises (SMEs), which constitute 96 percent of businesses in Nigeria and contribute 46 percent to our GDP while employing 84 percent of our populace, this programme opens new horizons for international trade participation.”

He called for collaborative efforts across all stakeholders, noting that the success of the AEO programme relies on their collective efforts.

Ian Sanders, secretary general, World Customs Organisation (WCO), said that NCS has translated its commitment to trade facilitation and supply chain security into visible steps by aligning its operations with the WTO-provided Kyoto Convention and the World Trade Organisation Trade Facilitation Agreement, to global standards that help define the state of practice to which customs administrations should all aspire.

Sanders said that the benefits NCS will offer AEOs, such as lower rates of physical examination, release of goods to clients’ premises, expedited processing and release, and access to dedicated vendors, will contribute to the creation of a healthier business environment that enables companies involved in trade to thrive.

Speaking at the launch also, Governor Babajide Sanwo-olu said the AEO programme marks a pivotal moment in the country’s collective pursuit of an efficient, transparent and secure trade environment.

He commended the NCS for the laudable initiative that will help reorganise the business processes of the Service and contribute to the ease of doing business in the country.

The governor, who was represented by Folashade Ambrose-Medebem, commissioner for commerce, cooperative, trade and investments, said the AEO programme is a game changer for trade and security, noting that it is a global partnership between customs authorizes and businesses committed to compliance security and best practices in supply chain management.