Customs AEO programme will improve Nigeria’s business environment – WCO

The Secretary-General of the World Customs Organisation, Ian Saunders, says the Authorised Economic Operator programme introduced by the Nigeria Customs Service to boost trade in Nigeria will create a healthier business environment.

Saunders stated this while speaking via Zoom during the official launch of the AEO programme in Lagos over the weekend.

He said that in the pilot stage, companies participating as AEOs have already reported an initial return on investment, including a cost saving of N100m within a three-month period and a 66 per cent reduction in clearance time.

According to him, these impressive figures from the pilot stage are indicators of the potential return on investment that AEOs can anticipate in a fully established environment.

“The benefits that NCS can offer to AEOs, such as lower rates of physical examination, release of goods to clients’ premises, expedited processing, and release, all contribute to the creation of a healthier business environment, one that enables companies involved in trade to thrive, and one that is more welcoming to those that perhaps might not have seen trade as an avenue for their growth,” he said.

Saunders highlighted that over the past 24 months, the NCS has translated its commitment to trade facilitation and supply chain security into visible steps to align its operations with the WTO-provided Kyoto Convention and the World Trade Organisation Trade Facilitation Agreement, two global standards that help define the state of practice to which customs administrations should all aspire.

“Today, we celebrate the inspiring journey toward the implementation of an authorised economic operator programme that aligns with international standards and best practices, and specifically, the WTO’s Safe Framework of Standards,” he added.

The WCO SG stated that by taking such an inclusive approach, customs strategy created opportunities for improving the security of a range of international supply chains and creating higher resilience in a manner that would support broad economic participation and prosperity.

He said that the NCS wisely tested and engaged stakeholders, and through this experience, created a proof of concept that has made today’s launch possible.

Saunders expressed confidence that the AEO programme will continue and grow as it expands.

He nevertheless told the stakeholders to recognise how the milestone was achieved as they consider the future of the AEO programme.

 “And as you all reflect on this milestone, the path leading here, and the one going beyond, know that your experience and your example are powerful, not just for Nigeria, but for other countries and customs administrations seeking to reform and modernise in ways that fulfil the vision of true trade facilitation with effective supply chain security,” he said.

The WCO scribe added that the WCO is proud to be a partner in the endeavour, empowered with the standards and best practices that define success in customs, and enabled by the accelerated trade facilitation programme, funded by the United Kingdom.

He said that the WCO remains committed to supporting NCS in advancing trade facilitation.

Saunders said that the launch of the AEO programme is but one element of a modernisation and efficiency effort in the NCS, marked by clear leadership by the CGC and his team, grounded in a sense of local ownership, and guided by a recognition of the benefits that trade facilitation can bring to Nigeria.