Nigeria Customs’ Gambit with the “Authorised Economic Operators” By Abdulsalam Mahmud
The Nigeria Customs Service (NCS) on Friday, 14 February 2025, officially launched its “Authorised Economic Operators” (AEO) programme. The initiative aims to enhance trade facilitation and reduce clearance times.
The AEO is one of the laudable achievements of Bashir Adewale Adeniyi as Comptroller-General of Customs. This signature programme, even within the brief period of its pilot phase, has yielded significant economic benefits for Nigeria.
The AEO programme is a globally-recognized trade facilitation initiative endorsed by the World Customs Organization (WCO). It is designed to foster trust-based partnerships between customs authorities and compliant businesses, allowing certified operators to enjoy simplified customs procedures, priority clearance, and reduced inspections.
Countries such as the United States, China, the United Kingdom, Germany, and India have successfully implemented AEO schemes, leading to increased efficiency in global supply chains and a more seamless movement of goods.
Speaking during the launching event at the Lagos Continental Hotel, CGC Adeniyi highlighted the crucial role of trust and collaboration in the programme’s success. “This partnership is built on mutual trust between Customs authorities and business entities, offering reciprocal benefits through official recognition of reliable business partners.
“Maintaining trusted operator status requires continuous investment in compliance and security measures,” the CGC said. He noted that the pilot phase, which began on 15 April 2024, had been highly successful. The six pilot AEO companies demonstrated remarkable growth, with their collective trade value soaring from N185.8 billion in 2023 to N563.8 billion in 2024.
Reaffirming the NCS’ commitment to efficiency and security, Adeniyi said: “As we fully implement the AEO programme today, our dedication to efficiency, security, and prosperity remains unwavering. The early success of our pilot phase has shown that we can achieve—and surpass—our targets, setting new benchmarks for trade facilitation in Africa.”
He further announced that the AEO portal will open on 17 February 2025 for eligible importers, exporters, terminal operators, logistics companies, customs brokers, and freight forwarders that have demonstrated compliance. In her welcome address, Deputy Comptroller-General of Customs (DCG) for Tariff and Trade, Caroline Niagwan, stressed the programme’s significance.
“The AEO programme will not only improve port efficiency but also attract investment, reduce costs, and enhance Nigeria’s competitiveness in the global market,” she said, urging stakeholders to support the initiative for national benefit.
A key highlight of the event was the presentation of certificates to the six pilot AEO companies. They expressed gratitude to the NCS for the recognition and pledged to remain compliant and transparent.
Countries that have implemented AEO programmes have recorded significant successes in trade facilitation, customs efficiency, and economic growth. In the United States, the equivalent of AEO is the Customs-Trade Partnership Against Terrorism (C-TPAT).
This programme, which began in 2001, has strengthened supply chain security while expediting trade for certified businesses. Companies enrolled in C-TPAT report faster clearance times and lower risk scores, reducing the likelihood of inspections and delays.
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China, a major global trade player, launched its AEO system in 2008. By 2018, China had secured Mutual Recognition Agreements (MRAs) with over 40 countries, allowing Chinese businesses to enjoy preferential treatment at international borders.
This has enhanced the efficiency of exports and improved trade relations between China and its global partners. In Europe, the AEO programme has been successfully integrated across the European Union (EU). Germany, for example, has used AEO certification to create a seamless trade environment for its businesses.
German AEO-certified companies report a 30% reduction in customs-related delays, boosting productivity and increasing investor confidence in their logistics sector. India, another emerging trade powerhouse, adopted its AEO programme in 2011 to address delays in customs clearance.
By 2021, India had granted AEO status to over 5,000 businesses, significantly reducing cargo clearance time from an average of 72 hours to less than 24 hours in some cases. This efficiency has contributed to India’s improved ranking in the World Bank’s Ease of Doing Business Index.
For Nigeria, embracing the AEO framework is more than a customs reform. It is a strategic shift in how the country engages with global trade. By cutting down delays at ports and border checkpoints, the initiative can restore investor confidence, improve Nigeria’s ease of doing business ranking, and make Nigerian exporters more competitive.
Faster cargo clearance and lower transaction costs will not only drive economic growth but also reduce the frustrations businesses often face with customs bottlenecks. But beyond the immediate gains, the AEO programme fits neatly into Nigeria’s long-term goal of diversifying its economy.
With the country looking to reduce its dependence on oil revenues, initiatives like this can help expand non-oil exports, attract foreign direct investment, and establish Nigeria as a key trade hub in Africa. More importantly, the programme’s strict compliance and security requirements will tighten supply chain integrity, ensuring that only businesses with a track record of transparency enjoy its benefits.
Still, for AEO to truly live up to expectations, the Nigeria Customs must keep the certification process transparent and free of bureaucratic roadblocks that could deter genuine businesses. There is also a need for continuous engagement with industry players, particularly small and medium-sized enterprises (SMEs), which often struggle with customs regulations.
If the AEO programme ends up favouring only big corporations, it will fail to achieve the broad-based impact it promises. Equally crucial is Nigeria’s ability to secure Mutual Recognition Agreements (MRAs) with its major trading partners.
These agreements will allow Nigerian businesses to enjoy the same customs privileges abroad as they do at home, reducing inspections and easing cross-border trade. Countries with strong MRA networks have witnessed major improvements in trade efficiency.
Nigeria should not be left behind in this race. If executed properly, the AEO programme could mark a turning point for Nigeria’s trade ecosystem. It is an opportunity to reimagine customs operations, not just for efficiency but for a trade environment built on trust, speed and economic prosperity.
Whether it becomes a game changer or just another policy with good intentions will depend entirely on how well it is implemented.
*Mahmud, Deputy Editor of PRNigeria, can be reached via: [email protected].*
