The pilot AEO program by the Nigerian Customs Service has cut cargo clearance time by 66.9%, achieving a reduction from 168 to 43 hours. It surpassed the targeted 48-hour time frame and significantly improved operational efficiency with cost savings over N100 million for pilot companies. This initiative aligns with national goals for economic growth and global trade facilitation standards.
The Nigerian Customs Service (NCS) has reported a significant milestone with its pilot Authorized Economic Operator (AEO) program, achieving a remarkable 66.9% reduction in cargo clearance time, decreasing it from 168 hours to just 43 hours. This achievement greatly exceeds the expected target of 48 hours and significantly outperforms the previous five-day clearance period observed before AEO implementation.
Adewale Adeniyi, the Comptroller General of Customs, highlighted the substantial operational efficiency improvements recorded during the pilot phase. He noted that the AEO program leads to faster customs clearance processes, significantly reduced physical inspections, and priority treatment in customs operations, enhancing overall supply chain predictability.
The AEO initiative has also resulted in measurable cost savings, exceeding N100 million for participating companies in just one quarter. Adeniyi expressed that the success of this program is primarily measured by the quality of partnerships formed, emphasizing self-regulation among AEO partners as a key factor.
The AEO program aligns with NCS’s modernization goals to meet global trade facilitation and supply chain security standards. Adeniyi stated that the early successes of the AEO program signal Nigeria’s commitment to being a reliable trading partner, aligning with national economic objectives, including President Bola Tinubu’s ambition of achieving a $1 trillion economy by 2030.
Governor Babajide Sanwo-Olu acknowledged the AEO program’s potential to enhance Nigeria’s trade environment at the launch event. He lauded the initiative for reorganizing customs processes and contributing to improved business operations in the country. The AEO program is seen as a transformative step toward creating a secure and efficient trading ecosystem, promoting compliance and best practices in supply chain management.
In summary, the pilot AEO program initiated by the Nigerian Customs Service demonstrates significant advancements in cargo clearance efficiency, achieving a 66.9% reduction in processing time. The program aligns with national economic growth objectives, fostering collaboration among stakeholders to enhance trade facilitation and supply chain security, ultimately positioning Nigeria as a competitive global trading partner.
Original Source: businessday.ng
