Nigeria Customs Service is easing the process of intra African trade, opening opportunities for businesses in the country to key into the AfCFTA initiative for export
The Nigeria Customs Service has been taking bold steps to achieve more penetrating implementation of the African Continental Free Trade Area (AfCFTA) regime through trade facilitation policies and other measures to encourage local companies’ participation .
With efforts at top gear to help compliant Nigerian traders migrate to the status of Authorised Economic Operators(SEO) and it’s advance ruling initiatives for import cargoes to achieve faster clearance, the NCS is positioning Nigeria for more robust trading experience with other African countries.
The service commenced training on advance ruling in July 2024 to prepare it’s officers for implementation
Import of the Programmes
The AEO is a business that has been approved by a national customs administration to participate in the international movement of goods. AEOs are required to meet certain standards for security and compliance. The World Customs Organization (WCO) and the World Trade Organization (WTO) drive the AEO program.
An advance ruling is a written decision from customs authorities that provides information on how goods will be treated when imported. It’s issued by a competent authority at the request of a trader before the goods are imported. Advance rulings can cover classification, origin, or valuation of goods.
Advance rulings can help with:
Transparency: They provide a formal process for how goods will be treated by customs.
Certainty: They can help traders make informed business decisions, such as pricing, quantities to import, and commercial viability.
Risk management: They can help customs administrations manage risk.
The World Customs Organization (WCO) has developed guidelines and tools to assist with advance ruling programs. These include the Technical Guidelines on Advance Rulings for Classification, Origin and Valuation.
At the recently held Biashara Afrika in Kigali, Rwanda the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi , held a high-level meeting with the Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, on the sidelines to discuss ways to enhance intra-African trade and foster deeper economic integration.
Running on it’s second edition,the Biashara Afrika 2024 under theme Dare to Invent the Future of the AfCFTA, sought to address challenges many small ,medium and micro enterprises (SMMEs) face when trading in Africa with panel of experts discussing how leveraging trading companies and strategic partnerships for intra-African trade can ensure the success of AfCFTA and increase their access to markets on the continent
A Nigeria Customs Service release obtained by JournalNG said “The meeting between the CGC and the Secretary-General provided a unique opportunity to refine strategies aimed at improving trade facilitation under the AfCFTA agreement. Discussions centered on addressing existing bottlenecks and encouraging small and medium-sized enterprises (SMEs) to take advantage of the opportunities provided by the agreement, given their critical role in boosting intra-African trade. Particular emphasis was placed on the role of Customs in these efforts.
” During the meeting, the AfCFTA Secretary General praised the Nigeria Customs Service (NCS) for its progressive initiatives, including the pilot phase of the Authorized Economic Operator (AEO) programme, the implementation of Advanced Rulings, and the conduct of Time Release studies. “These initiatives have positioned the NCS as a benchmark for customs administrations across Africa,” he added.
“In response, Comptroller-General Adeniyi commended the Secretary-General for his unwavering commitment to advancing the AfCFTA’s goals, despite the resource constraints faced by the Secretariat. He also acknowledged the critical support provided by President Bola Ahmed Tinubu’s administration and the legislative arm through the Nigeria Customs Service Act 2023. “The Act has been instrumental in providing the necessary legal framework for implementing initiatives that align with the government’s vision of making Nigeria the most efficient trading nation on the continent, fostering SME growth, and boosting exports to strengthen intra-African trade,” he said.
“The high point of the conversation was the recent achievement of Mrs Chinwe Ezenwa, CEO of LE LOOK Nigeria Limited, who became the first woman to export goods under the Guided Trade Initiative (GTI) of the AfCFTA to East, Central, and North African countries. Her success, marked by the export of goods on 16th July 2024 from Apapa Port in Lagos, underscores the growing opportunities for Nigerian businesses in the continental market.
“A key outcome of the meeting was the AfCFTA Secretariat’s commitment to develop a concept note outlining the way forward for the free trade area. In turn, the NCS pledged to bring these discussions to the Heads of Customs Administrations platform in Africa, ensuring a coordinated approach to addressing customs-related challenges across the continent” it stated in part.
Nigeria’s Journey Into African Markets Through AfCFTA
This year,Nigeria has officially launched its participation in the African Continental Free Trade Area (AfCFTA) with its first shipment under the Guided Trade Initiative (GTI) on Tuesday July 16, 2024 at Apapa Port in Lagos where ten companies began exporting products to five African countries.
Among the ten companies, Chinwe Ezenwa, CEO of LE LOOK Nigeria Limited stood out as the first woman to export goods to East, Central, and North African countries under the GTI/AfCFTA framework. This notable achievement was highlighted during the inauguration ceremony as Ezenwa, expressed satisfaction in this achievement marking the culmination of her 39-year journey in promoting made-in-Africa goods. She celebrated the growing recognition of African products on the global stage and encouraged women to take advantage of the opportunities provided by AfCFTA to showcase their products.
Olusegun Awolowo, National Coordinator of the AfCFTA Coordination Office, encouraged Nigerians to seize the opportunities presented by AfCFTA to enhance production and productivity and to cultivate a robust export community. He noted that ten exporters are set to send Nigerian products to five countries across the East, Central, and North African regions. He also congratulated Chinwe Ezenwa for being the first woman to receive the Nigeria/AfCFTA Certificate of Origin.
This inaugural shipment signified a significant step forward for Nigeria in enhancing its trade relations within Africa and contributing to the continent’s economic integration and growth.
In October,the NCS also facilitated Nigeria’s first shipment to Kenya, with Lucky Fibres, a subsidiary of the Tolaram Group, one of the first companies to ship goods to Kenya under the African Continental Free Trade Area Agreement (AfCFTA).
During a visit to the Apapa Area Command on Wednesday, 30 October 2024, to ensure proper documentation and verification of the shipment, Olusegun Olutayo, Senior Trade Expert and Lead of Trade Enablement at the Nigeria AfCFTA Coordination Office, noted that the shipment from Nigeria to Kenya, specifically to the port of Mombasa, demonstrates the collaborative spirit of AfCFTA.
He emphasised the critical role of the Nigeria Customs Service as the Designated Competent Authority (DCA) under AfCFTA, leveraging its expertise to ensure seamless trade.
With the initiatives emplaced by the NCS, Nigerian businesses have shown capacity to trade under AfCFTA exhibiting prospects to get better by the day.
The NCS has facilitated Nigeria’s first shipment to Kenya, with Lucky Fibres, a subsidiary of the Tolaram Group.
The service added that with the shipment, the company has become one of the first companies to ship goods to Kenya under the African Continental Free Trade Area Agreement.
The National Public Relations Officer of the service, Abdullahi Maiwada, disclosed this in a statement recently
Speaking during a recent visit in Apapa to ensure proper documentation and verification of the shipment, a Senior Trade Expert and Lead of Trade Enablement at the Nigeria AfCFTA Coordination Office, Olusegun Olutayo, noted that the shipment from Nigeria to Kenya, specifically to the port of Mombasa, demonstrates the collaborative spirit of AfCFTA.
“It is not that we are doing it alone; I have already sent a message to the Secretariat in Ghana that there will be a shipment under AfCFTA to Kenya. I have also communicated with the AfCFTA implementation committee in Kenya. So this is the spirit we are building to ensure that we increase intra-African trade,” Olutayo noted.
He emphasised the critical role of the service as the Designated Competent Authority under AfCFTA, leveraging its expertise to ensure seamless trade.
According to him, the NCS has been fantastic adding that the service has shown readiness to facilitate trade.
Watchers of the nation’s trade agree that the future looks brighter as more companies and individuals are expected to key into the initiative while the AfCFTA Secretariat is expected address issues of trade barriers like visa, currencies and other challenges facing intra continental trade in Africa
