Trade Facilitation Gets Boost as NCS Launches AEO Programme

By Winifred Ngozi Orji 

Harboursandport.com: Lagos State, Nigeria - February 14, 2025:The Nigeria Customs Service (NCS) has taken a bold step launched its Authorized Economic Operator (AEO) Programme, marking a significant step towards trade facilitation in the country.

Comptroller General Of Customs Bashir Adewale Adeniyi

The launch event took place at the Lagos Continental Hotel on February 14, 2025, where six pioneer companies, including the SME Lelook Nigeria Limited, were certified for their involvement and contributions during the pilot phase.

Comptroller General of Customs, Bashir Adewale Adeniyi, announced that the AEO program registration portal for other eligible companies will open on February 17, 2025. He also presented AEO certifications to the six companies, praising their integrity and dedication.

“We actually started with 12 potential companies, but along the line, we had to focus on these six,” Adeniyi stated. He expressed confidence that the remaining companies would soon achieve AEO status.

The certified companies are:

• Lelook Nigeria Limited: Owned by Mrs. Chinwe Ezenwa, a leading bag manufacturer in Africa.

• FrieslandCampina WAMCO Nigeria PLC: A dairy product company, producing Three Crowns Milk.

• 11PLC (formerly Mobil Oil Nig. Plc) an indigenous company supplying lubricants.

• First Class Refreshment Ltd: A company packaging and exporting Nigerian snacks like Kilishi.

• Huawei Technology Company Nigeria Limited: A technology provider operating in Nigeria since 1999.

• Ideal Royal Crown Logistics Limited: A logistics company providing end-to-end solution.

Adeniyi emphasized the impressive success of the pilot phase, mentioning that the six participating companies experienced a substantial increase in their collective trade value, rising from N185.8 billion in 2023 to N563.8 billion in 2024. Their contribution to customs revenue also saw significant growth, reaching N51.1 billion in 2024, which helped boost the overall revenue from N3.2 trillion in 2023 to N6.1 trillion in 2024.

He highlighted the program's significant impact on operational efficiency, noting that the average cargo release time for AEO-certified companies during the pilot phase was just 43 hours. This surpassed the target of 48 hours and represented a remarkable 66.9% reduction compared to the pre-AEO period.

Adeniyi also highlighted the cost savings exceeding N100 million achieved by pilot companies 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,” Adeniyi said. “We are not just working with compliant companies; we are partnering with organizations that uphold the highest standards of business ethics.”

The CGC emphasized that the AEO program is in line with President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030 and complements the President’s 8-Point Agenda.

He stressed the program's potential to support food security, economic growth, job creation, access to capital, and anti-corruption efforts. “Nigeria is positioning itself as a reliable, predictable, and competitive trading partner,” Adeniyi asserted.

Representatives from various organizations lauded the AEO program. Charles Odii, Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), expressed excitement about the program’s potential to benefit SMEs, noting that it could significantly reduce bottlenecks and improve their return on investment.

“Almost immediately, our small business owners would get return on investment because AEO is now in operations today,” Odii stated.

He highlighted the participation of Lelook Nigeria Limited, a 74-year-old SME owner, and First Class Refreshment Ltd, as examples of how the program can empower small businesses.

“It’s a new day in Nigeria with the launch of the Single Window Initiative, with the launch of AEO, and with the reforms and policies that President Bola Ahmed Tinubu is putting in Nigeria today,” Odii added.

Dele Kelvin Oye, President of the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), stated that the organized private sector has the capacity to generate the needed revenue for 2025 if given the right environment.

“The organised private sector represents 97% of the economy, if you tell us to cover the 13trillion in this year’s budget , it would be through productivity, we cannot borrow ourselves out or increase taxes, but if you want us to, we have the capacity to do it,” Oye said.

Princess Zahrah Mustapha Audu, Director-General of the Presidential Enabling Business Environment Council (PEBEC), affirmed that the AEO program aligns with PEBEC’s mandate and will enhance Nigeria’s trade competitiveness by simplifying customs processes for trusted businesses.

“We believe that the AEO is a significant step in ensuring our business is competitive and sustainable,” Audu stated.

The AEO program website (aeo.nigeriatradehub.gov.ng) is now open for applications from eligible companies.

The CGC encouraged all compliant businesses to apply and participate in this transformative initiative.

The occasion was graced by the Lagos State Governor, Babajide Sanwoolu, ably represented by Commissioner for Commerce, the heads of agencies in the maritime sector, including the Managing Director of Nigerian Ports Authority (NPA) Dr Abubakar Dantsoho, the Executive Secretary of Nigerian Shippers Council, Dr Pius Akutah Ukeyima.