AUTHORISED ECONOMIC OPERATOR (AEO) SCHEME REMAINS A GAME CHANGER— CUSTOMS CG
Trust, like love, forms the bedrock of enduring relationships. In both personal bonds and professional partnerships, it is built through consistent demonstration of commitment, nurtured by mutual respect,
and strengthened by shared values. Today, February 14th, as the world celebrates these principles through expressions of love, we gather to commemorate a different kind of partnership – one that embodies these same fundamental values in international trade.
Distinguished guests, welcome to the Lagos Continental Hotel, a venue of significant importance to the Nigeria Customs Service. It was here in 2023 that we successfully reinstated the Comptroller General’s Conference, following an eight-year hiatus. That event spearheaded the
restoration of strategic engagements with our stakeholders, fostering relationships built on trust, commitment, partnership, recognition, and validation. While today’s date, February 14, 2025, coincides with
Valentine’s Day – as evidenced by the touches of red in our attire symbolizing expressions of goodwill – our gathering serves a distinct purpose. We have gathered to join the global customs community in celebrating a partnership framework recognized and endorsed as
international best practice: the strategic alliance between Customs and Business.
This partnership is founded on mutual trust between Customs authorities and business entities, delivering reciprocal benefits through official recognition of reliable business partners, sustained by
continuous investment in compliance and security measures to maintain trusted operator status. This heralds a strategic reorientation in customs administration, moving from traditional transaction-based
control to a more sophisticated system of comprehensive compliance management. This evolution in customs-business relationships reflects the dynamic nature of international trade and the growing need for secure, efficient supply chains.
The Authorized Economic Operator (AEO) programme embodies these principles in their most refined form. As defined by the World Customs Organization (WCO), an AEO is a party involved in the international movement of goods that has been certified by a national Customs administration as complying with WCO or equivalent supply
chain security standards. This certification validates a company’s commitment to security, compliance, and operational excellence in international trade. Through the AEO programme, certified operators
gain access to streamlined customs procedures, reduced physical inspections, and priority treatment during customs clearance processes, while Customs authorities benefit from enhanced risk management and more efficient resource allocation.
The Nigeria Customs Service’s decision to implement the AEO programme aligns with global best practices that began around April 2024. In developing our AEO framework, we strategically benchmarked against two leading customs administrations: His Majesty’s Revenue and Customs (HMRC) UK and South Africa
Revenue Authority (SARS), representing best practices both globally and within the African continent.
The success of our pilot phase, which commenced on April 15, 2024, has been remarkable. Our 6 pilot AEO companies have demonstrated exceptional growth, with their collective trade value increasing significantly from NGN 185.8 billion in 2023 to NGN 563.8 billion in 2024. This growth is mirrored in the customs revenue
generated from these companies, which rose from NGN 18.4 billion in 2023 to NGN 51.1 billion in 2024, contributing meaningfully to our overall revenue which grew from NGN 3.2 trillion in 2023 to NGN 6.1 trillion in 2024.
Perhaps most significantly, the pilot phase has yielded transformative improvements in operational efficiency. We set an ambitious target to reduce clearance time from 168 hours to 48 hours. By December 31st, 2024, our AEO-certified companies were achieving an average release time of 43 hours – surpassing our target by 5 hours. This represents a remarkable 66.9% reduction in cargo clearance time compared to the pre-AEO status of 5 days and significantly outperforms the 7-day clearance period required for regular Economic Operators (EOs).
These achievements substantiate the compelling benefits of the AEO programme: accelerated customs clearance processes; substantial reduction in physical inspections; priority treatment in customs processes; enhanced predictability in supply chain operations; and measurable cost efficiencies, evidenced by our pilot companies achieving cost savings exceeding NGN 100 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. One compelling example is how our AEO partners have embraced the principle of selfregulation. Recently, one of our pilot beneficiaries demonstrated
exceptional integrity by voluntarily disclosing an underpayment of duty amounting to several millions of naira. This level of trust and transparency – where partners self-audit and bring oversights to our attention – exemplifies the essence of the AEO programme. We are not just working with compliant companies; we are partnering with organizations that uphold the highest standards of business ethics.
Through these demonstrated successes, we are sending a clear message to the international trade community: Nigeria is positioning itself as a reliable, predictable, and competitive trading partner. This
aligns perfectly with our national economic objectives, particularly President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030. The AEO programme strategically complements the
President’s 8-Point Agenda by supporting food security through faster clearance of agricultural inputs and machinery; contributing to economic growth through trade facilitation; creating jobs through
expanded business opportunities; improving access to capital by reducing operational costs for businesses; and fighting corruption through enhanced transparency in customs processes. Furthermore, it reinforces the administration’s commitment to boosting non-oil exports, strengthening agricultural value chains, and improving the
manufacturing sector’s competitiveness. This programme also supports the government’s focus on technological advancement and digital transformation of government services, while contributing to the Presidential initiative on Customs modernization. By reducing clearance times and transaction costs for businesses, we are actively supporting the administration’s drive to attract foreign direct investment, enhance industrial capacity utilization, and create an
enabling environment for business growth, particularly in the Special Economic Zones and Export Processing Zones.
The transformative impact of the AEO programme extends beyond straightforward statistics. For our Small and Medium Enterprises (SMEs), which constitute 96% of businesses in Nigeria and contribute 46% to our GDP while employing 84% of our populace, this
programme opens new horizons for international trade participation. We take pride in highlighting two pioneering SMEs currently benefiting from the AEO scheme: Lelook Nigeria Limited, which has
broken new ground as the first Nigerian company to export under the African Continental Free Trade Area’s (AfCFTA) Guided Trade Initiative, showcasing innovative use of local fabrics in their bag and accessories manufacturing; and 1st Class Refreshment Ltd, which is
introducing over 200 Nigerian delicacies, including their signature Kilishi, to the global market.
The success of the AEO programme, however, relies heavily on collaborative efforts across all stakeholders, and I must acknowledge the exceptional support we have received at the highest levels of
government. The direct oversight and strategic guidance from His Excellency, President Bola Ahmed Tinubu, coupled with the support of the Chairman of the Nigeria Customs Service board, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr.
Olawale Edun, have been instrumental in driving this initiative forward. The synergy established with the Ministry of Marine and Blue Economy under the leadership of His Excellency, Mr. Adegboyega Oyetola, has further strengthened our implementation framework. Particularly noteworthy is our robust partnership with the Nigerian
Ports Authority (NPA). Just yesterday, our engagement with the NPA leadership, led by their Managing Director, demonstrated the strong commitment to this programme, as evidenced by the impressive turnout
of their top management here today. Their role is crucial in providing dedicated facilities for AEO cargo aggregation, streamlined processes, and priority treatment for certified traders. This includes establishing dedicated facilities for the aggregation of AEO cargoes and
implementing streamlined processes that align with international best practices. This high-level collaboration between the Nigeria Customs Service and port authorities, supported by clear presidential directives and ministerial guidance, is essential in ensuring a seamless experience across all supply chain touchpoints. The enthusiasm, confidence, and outcomes from these partnerships are indeed reassuring for the future success of this programme.
As we progress with full implementation of the AEO programme today, our commitment to efficiency, security, and prosperity remains indefatigable. The early success of our pilot phase has demonstrated that we can achieve and exceed our targets, setting new standards for trade facilitation in Africa. When we examine the numbers, the impact is compelling: our six pilot AEO companies have shown remarkable growth, with their trade value more than tripling from NGN 185.8 billion in 2023 to NGN 563.8 billion in 2024. Their contribution to Customs revenue grew significantly, reaching NGN 51.1 billion, representing approximately 0.8% of our total revenue collection of
NGN 6.1 trillion in 2024. While these figures might appear modest in
percentage terms, they represent an extraordinary achievement for just six companies in a pilot phase, demonstrating the immense potential for growth as more companies embrace the AEO programme. The cost savings and efficiency gains realized by our AEO-certified companies
are expected to cascade down to consumers, contributing to reduced
costs of goods and services across the nation. I therefore urge all compliant businesses to view these credible testimonies as compelling evidence of the benefits of the AEO programme and to consider this as an opportunity to transform their trade operations. The path to AEO certification, though demanding, clearly leads to substantial rewards in
operational efficiency and bottom-line results.
On this day that celebrates dedication and commitment, I must express profound gratitude to our AEO implementation team. Like the spirit of Valentine’s Day itself, you have demonstrated steadfast devotion to this cause, working tirelessly to transform a vision into reality. Your passion, expertise, and commitment have laid a solid foundation for this programme’s success. As we transition the pilot
implementation team’s responsibilities to a formal structure within the Service under the leadership of a Comptroller, your contributions will forever remain a cornerstone of this transformative initiative.
As we forge ahead, I am pleased to announce that the AEO programme website – aeo.nigeriatradehub.gov.ng – will open for new applications from February 17th, 2024. We invite all eligible companies who share our vision of transparent, efficient, and secure trade to join this transformative journey.
Let me conclude by expressing my gratitude to our international partners, particularly the Secretary General of WCO, Ian Sanders, for his resolute support, and the WCO Accelerate Trade Facilitation
program team led by Donnia Hammami, whose guidance has been instrumental in our successful adoption of global best practices. The World Bank’s support through the Accelerating Resource Mobilization Reforms programme – ARMOR – whose name fittingly echoes the French word “L’amour” (Love) on this Valentine’s Day, has been invaluable. his meaningful convergence on February 14th is
appropriate, as today we celebrate a partnership built on trust, compliance, and mutual prosperity between Customs and Business – a different kind of commitment, but one no less transformative for Nigeria’s trade future.
Thank you for your attention, and God bless Nigeria